Strategy Essay Example | Topics and Well Written Essays - 1000 words

Strategy - Essay Example Organized Financial 7,647,000,000 revenues in 1992, 19% market share, cheap loans yes yes yes yes Physical 15 manufacturing facilities, efficient transport mechanisms yes yes yes yes Technological Improved fuselage, forward facing crew cockpits, Laser guided automatic riveter yes yes yes yes Organizational Groupement d’Interet Economique; all partners are responsible for their own profits no no no Yes/no Financial: Estimated revenues at over 7.6 billion Physical: 15 Ultra-modern facilities, at four strategic locations with automatic laser guided riveters Technological: laser-guided, automatic riveters. This reduced that stage from three months to three days. Organizational: Efficient organisational structure with each partner responsible for own profits Intangible Resources Valuable Rare Difficult to Imitate? Organized Human Experienced/innovative research team, sound management yes yes yes yes Innovation and Creativity leaders in (LGAR) technology yes yes yes yes Reputation R eputable but government assisted no no no yes Human: Experienced/innovative workers, efficient managerial team Innovation and Creativity: Airbus is considered a leader in innovation Reputation: With the ruling to regulate government subsidies/loans to airlines, this could hurt Airbus’s profitability SWOT Analysis Strengths Weaknesses Boeing: -60% market share -Steady business defence -Strong balance sheet -Admirable supplier relationship -Manufacturing capability Boeing: -Losing market share -Long order to delivery date -Cost of developing new VLCT Airbus: -Strong support from Governments -Profitable -Innovation ideas implemented, laser-guided riveting machine -Growing market share, estimated 23% in 1993 Airbus: -White tail, manufacturing planes without order -Manufacturing capabilities Opportunities Threats Boeing: -VLT necessary in near future -Aging fleets will need to be replaced with newer models (15-20 years) -Large market capitalisation - Largest manufacturing faciliti es Boeing: -Future airport capacity issues -Long delivery time -Investing alone in VLCT could cause Boeing to go under if failed -Declining market share Airbus: -Boeing running beyond capacity will cause airlines to pursue other options for quicker delivery dates -Good option for customers due to quick delivery time - Aging fleets will need to be replaced with newer models Airbus: -Decline in order for 1993 -Investing alone in VLCT could cause Airbus to go under if failed -white tails may be a catastrophic loss if buyers get better options Part 2 Definitely, Boeing has a competitive advantage over its next nearest rival Airbus. Boeing has an estimated 60% market share as of 1992 compared to