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Strategic management assignment 2 - Essay Example

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The report attempts to analyze the strategic approaches of Airbus along with the global aerospace industry in the context of contemporary business environment. The…
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Strategic management assignment 2
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Strategic management assignment 2

Approaches adopted by the company for attaining sustainable growth have also been discussed in the report. The study has also taken into account the financial performances of the company in the recent years. A comparative study has been initiated to study the performance of Airbus with that of its other prominent competitors.
The Industry: The aerospace industry has a close relationship with the airline industry and the relationship between them keeps on altering and restructuring itself. It had recorded its first downturn in demand after the incident of September 11, 2009 and observed the same with an increased rate of downfall. Among airline companies, low fare segment remained dominant in the industry and many of the larger brands filed for bankruptcy (ATKEARNEY, n.d., p.1).
Competitive strategy and industry position: Airbus adopted a strategy of manufacturing high capacity aircrafts which will also be fuel efficient and comfortable. This resulted in the formation of super-jumbo aircraft category. Restructuring of the aerospace industry and European defence led the company to adopt the industry conditions accordingly (Spulber, 2007. p.60).
Environmental factors: The industry has observed a gradual increase in the competition level with the entry of some new brands in the aerospace industry such as Bombardier, Jet blue and Embraer. To defend its market share, Boeing slashed its prices for some of its products. The prices were almost equivalent to that of the new industry players.
Temporal factors: The larger players of the industry recorded heavy backlogs among which Airbus and Boeing remained most prominent (See Appendix-1). The demand for aircrafts is expected to increase by the next twenty years and according to the forecasted demand, Boeing has predicted its sales figure for next twenty years as 30,000 aircrafts whereas Airbus has estimated the same as 3,112 for the next twenty ... Read More
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