The coursework focuses on the Airbus Industrie (Airbus), the civil Essay

The coursework focuses on the Airbus Industrie (Airbus), the civil aircraft manufacturer, jointly owned by BAe plc, and French, German and Spanish interest (t - Essay Example Airbus required an overall cost-cutting plan for travel management, an important target being to reduce the travel budget by at least 10%. To achieve that, Airbus decided to implement some new steps. Commercial jet aircraft is universally dependent on long-standing trends in airline passenger traffic. And this tendency can be explained by factors such as financial growth in developed and up-and-coming markets, political stability, profitability of the airline industry, and the globalization and consolidation of the industry. Other important factors are restrictions in air transport communications such as government and environmental regulations and air traffic control. Finally product development strategy and overall competition between manufacturers also impact the market. The industry is very demanding; it requires a long time to regain investments portrayed by long development cycles. It also requires a large base of skilled and experienced workers, high tech supporting industries and sophisticated and serious customers to flourish. Government involvement also plays a major role in determining the industry forces in various countries' industrial strategies and international t rade associations. Airbus strategies internationally operate in an environment shaped by three forces: the industrial constrictions of building modern aircraft, the demands of world and regional markets, and the configuration and objectives of the consortium itself. These factors map onto an integrated strategy analysis. The positional analysis for Airbus must focus on its status as the challenger to the dominant firm, on the consortium's peculiar organizational structure, and on the opportunities and constraints offered by its non-market context. One way of looking at Airbus's experience is as a continual series of disruptions aimed at creating openings for Airbus to enter markets dominated by well-established competitors, in particular, Boeing. These strategic moves have involved both market and non-market elements. The following lines summarize and assess the market and non-market key competitive strategies that Airbus industrie has engaged to establish itself in the crucial world market. 1. Widespread aircraft portfolio to assure the requirements of customer airlines across the board. Boeing is the best positioned with aircraft capacity ranging from 100 passengers (737-500) to 500 (747-400). Airbus had entered the market with small and medium sized carriers, but is fast catching up with the introduction of its four engine long haul A340 aircraft. 2. Pushing high technology, electronic fly by wire systems in order to reduce the number of pilots required-from three to two-and establish re-assigning easily from one type of plane to another, thus curtailing training time by developing the family concept. As an example, Airbus succeeded in achieving authorization from the FAA to have a single pool of pilots to operate its A320, A330 and A340 models. 3. Emerging resolution to pick up cost effective management of their planes, such as the general trend in migration to twin engine wide body planes, providing fuel efficiencies and quick reconfiguration of seating