StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Nursing
  • Economics of Industry - Market structure in the aircraft manufacturing industry

Economics of Industry - Market structure in the aircraft manufacturing industry - Research Paper Example

Not dowloaded yet

Extract of sample
Economics of Industry - Market structure in the aircraft manufacturing industry

(Boeing, 2011) Boeing, then expanded by acquiring Vertol Aircraft Corporation in 1960. (The Boeing Company, 2011) In 1996, Boeing took over Rockwell’s aerospace and defense units. Then in August 1997, Boeing merged with McDonnell Douglas. This merger allowed Boeing's leadership to increase as it joined with the line of Douglas airplanes. (The Boeing Company, 2011) The tax breaks given to Boeing by the US government have also helped in the expansion of the firm. It is believed that subsidies for the defense wing of Boeing have also helped with the commercial side of aircraft manufacturing. (Irwin & Pavcnik, 2003) In 2002, Boeing’s market share was 54%, however it is now struggling to maintain it. (Taylor & tillman, 2002) Airbus Airbus is a subsidiary of EADS, European Aeronautic Defense and Space Company. (Airbus, 2011) It was a government initiative by France, Germany and UK in 1967. It started off as a consortium of aerospace manufacturers, Airbus Industry. The combination of the European defense and aerospace companies in 2000 led to a company being established in 2001. BAE Systems and EADS transferred their assets to Airbus SAS, for ownership in that company. EADS owned 80% and BAE Systems 20%. (BBC News, 2000) In October 2006, BAE sold its ownership to EADS. Airbus Industry was officially recognized in December 1970. It is believed that Airbus has only been successful due to protection used by the European countries and a large launch aid. WTO reached a decision in August 2010 and May 2011 that Airbus had indeed received unacceptable government subsidies from several European countries which resulted in lower sales of Boeing aircrafts. (New York Times, 2011) Airbus’ market share has been steadily increasing sine its share of 46% in 2002. (Taylor & tillman, 2002) Product Development Boeing Boeing has approximately 12,000 commercial aircrafts in use globally, which constitutes around 75 percent of the world fleet. Through Boeing Training & Flight Services, it trains maintenance and flight staff in the 100-seat-and-above airliner market. Boeing has over 159000 employees, working in 71 countries (The telegraph, 2011). Through this diverse workforce and extensive training, the company’s product development ability has increased. In aircraft manufacturing, focus has always been on developing low cost, high quality aircrafts. Hence, approximately half of the current commercial aircrafts will be replaced in the next 20 years due to technological obsolescence and inefficiencies. This will increase the demand for new ones. Approximately 1,362 commercial aircraft orders were placed in 2010, greater than twice the amount placed in 2009. (Bombardier Commercial Aircraft, 2011) Emphasis is also on fuel efficient and environmentally friendly productions. Boeing, together with Air New Zealand has undertaken research on sustainable alternatives to conventional fuel. (Boeing, 2011) Extensive and expensive research allows better versions of existing aircrafts to be developed and new aircrafts to be launched in this oligopolistic market. Boeing has also resorted to outsourcing its production to Japanese suppliers including Mitsubishi Heavy Industries and Kawasaki Heavy Industries. The use of advanced technology has allowed Boeing to enhance its production capabilities. (Reuters, 2011) Airbus An internal air transportation system is used to airlift ...Show more

Summary

Introduction The market structure of commercial passenger aircraft is oligopolistic, primarily dominated by Boeing and Airbus. Boeing has a 70 year heritage and has been a leader in the industry for a long time. However, since the advent of Airbus, a European consortium, Boeing has faced tough competition and the market has developed and grown due to the presence of now two strong companies…
Author : qsenger
Economics of Industry - Market structure in the aircraft manufacturing industry essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Economics of Industry - Market structure in the aircraft manufacturing industry"
with a personal 20% discount.
Grab the best paper

Related Essays

Air lines industry
During this period, there have been severe financial issues that led to collapse of some major airlines. This paper will analyze the financial issues facing the industry since 1950, particularly addressing the causes of poor financial performance. It will also evaluate the proposed remedies for these problems and analyze the current financial status of the industry.
20 pages (5000 words) Research Paper
GUNNS AND THE AUSTRALIAN PULP AND PAPER MANUFACTURING INDUSTRY
Executive Summary Gunns Ltd. is one of the largest companies operating in the paper industry business sector of the Australian economy. The company is facing some difficulties operating its business activities in the recent years due to some strategic issues associated with it.
9 pages (2250 words) Research Paper
Analysis of Accessories & Gifts Manufacturing Industry Coach, Inc
Brand Name Lead Leverage of Suppliers Brand name plays a significant role in luxury goods market. Consumers pay for the popular “brand name” when they are purchasing apparel, footwear and accessories. Such a brand name cannot be created overnight. In general consumer loyalty strategically developed over long run is essential to build company’s brand reputation.
8 pages (2000 words) Research Paper
Outsourcing Policies On German Car Manufacturing Industry
Total quality management, defined as "set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements" is now being applied by various organizations to meet the demand for low-cost products such as autos (Authenticity Consulting, LLC).
26 pages (6500 words) Research Paper
What dose future hold for organanized labor in the u.s commercial aviation industry
All these efforts were intended to bring the labor unions together and eventually these gave organized labor substantial political influence. Due to the changing economy, globalization,
10 pages (2500 words) Research Paper
Economics - Telecommunications Industry Research
logical improvement (it can be the use of optical fibers which can carry a large volume of data and likely to be user-friendly or something like communication satellites) and market competition. The introduction of mobile network played a crucial role for the betterment of the
10 pages (2500 words) Research Paper
Discretionary Benefits within the Manufacturing Industry
Indeed, the productive sector or manufacturing industry is responsible for producing and selling want-satisfying products that are manufactured by dexterous specialized workers. These
7 pages (1750 words) Research Paper
GUNNS AND THE AUSTRALIAN PULP AND PAPER MANUFACTURING INDUSTRY
The external environment of the company has been analysed using PESTEL analysis and the various competitive factors affecting the
9 pages (2250 words) Research Paper
Manufacturing Industry Evaluation
According to this Census, concentration ratios for the fluid milk (311511), womens and girl’s cut & sew dresses (315233), envelopes (322232), and electronic computers (334111) are 315, 525, 166 and 465 respectively. These are further translated as 42.6 percent,
2 pages (500 words) Research Paper
Robotics in the Manufacturing Industry
Some of them can do work on their own while other must have a guide to tell them what to do. This term was originally introduced by an author whose name was Isaac Asimov in his book that was published in 1950; there were three laws of robotics presented by him. First
6 pages (1500 words) Research Paper
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation