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The Airbus Company Analysis Case Study

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Updated: Jun 26th, 2020

The primary target of this case study is to establish the strengths, weaknesses, opportunities and threats (SWOT) that are elaborated in the Airbus.

Strengths. The Airbus has a number of advantages that allow the company to compete with others and maintain market position. Firstly, the biggest strength of the Airbus Company is protecting a superior compelling market share. For example, the company had been maintaining competition with another representative of the industry – Boeing for a position of the dominant aircraft producer on the planet. As a result, the two companies managed to preserve a successful duopoly, in which each organization divides fifty percent of the market share.

Secondly, the Airbus Company has launched a profitable and prosperous jetliner manufacturing line: from the A318, which has one hundred and seven seats in a single line, to the A380, which is known as the biggest business aircraft in the production. Moreover, the Airbus Company suggests a broad selection in conditions of breadth and characteristics.

Other strengths of the Airbus Company consist in extensive funding and can maintain competition on high levels in conditions of novelties and modernization of the product designing, production, business concerns, and environmental friendliness. And the last but not the least strength of the company is the powerful patronage of EADS over Boeing.

Weaknesses. The primary weakness of the Airbus Company is discrete assertions placing blame on the organization for the issue of corruption and extortion of its previous members of authorities. Moreover, the competitor company of Airbus, Boeing, is taking the lead in the market share in North America. This may be due to the fact that NASA and Pentagon are guided by the political intentions while choosing Boeing over the Airbus for concluding the business agreements.

The concluding weakness that the Airbus Company is currently facing is the deferment of the operations. For example, A380 jetliner along with the A400M army transportation plane are way behind its original itinerary, which has led to an inability to fund these models, as there is a lack of millions of dollars in the financial plan for them.

Opportunities. The Airbus Company is constantly open for several opportunities: the forthcoming expansion of the organization, including those in the developing markets; a successful development of Low Cost airlines in Asia; an immense level of reinstatement of its production in maintenance in already established and influental markets; the extension of traffic on the established route network, which allow to increase quantity rather than prevalence. If all the opportunities mentioned above were fulfilled, it would contribute to the increasing the interest towards the Airline Company all over the planet.

Threats. Boeing is a major threat to the development of the Airbus Company, as it often critics its alleged trade infringements and keeps the technological competition with Airbus for several years to date. Moreover, “in 1982 Boeing pleaded guilty to false statements about commissions on the sale of commercial aircraft prior to 1977. Boeing also says that there have been public hearings in the Bahamas over allegations of bribery in the 1990 sale of deHavilland aircraft to Bahamas Air, during Boeing’s ownership of deHavilland” (Schulz 21), thus receiving an advantage in this issue over the Airbus. More threat for the Airbus Company come from such countries as Canada, China, Russia and Brazil, where the single-aisle market had been observed.

Works Cited

Schulz, Peter. Ethics and Airbus. München, Germany: GRIN Publishing, 2008. Print.

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