8/2/2019 Revolution in Jumbo Jet Market

1/22

Revolution in jumbo jet market

8/2/2019 Revolution in Jumbo Jet Market

2/22

Airbus - Boeing

Airbus-subsidiaryof EADS,Europeanaerospace companyfounded in 1970

Revenue-US $57billion.

Manufacturer ofthe world's largest

airliner, the A380.

Boeing-founded in1916 by William E.Boeing in Seattle,Washington.

Revenue-US$64.306 billion

largest globalaircraft

manufacturers byrevenue, ordersand deliveries.

8/2/2019 Revolution in Jumbo Jet Market

3/22

A380 v/s Boeing747

A380-maiden flight on 27April 2005

nickname Superjumbo

555 passengers

Cost-US$375.3 million

Range-15,200 km Speed-900 km/h

As of Oct 2011 236 firmorders for the A380, ofwhich 58 have beendelivered.

Boeing747-First flowncommercially in 1970

Nickname-Jumbo Jet, orQueen of the Skies

416 passengers

Cost-US$228260 million

Range-13,450 km Speed-920 km/h

1,418 units sold

8/2/2019 Revolution in Jumbo Jet Market

4/22

SWOT analysis-Airbus

Strengths:support fromEuropean Union

Wide range ofmodels-twin enginemid sized to fourengine gigantic sizes

Weakness:

High cost & longertime for design &production

Opportunities:rise in demand forair travel.Demand for more

transcontinentalflights with morecapacity.

Threats:

BoeingAirline Disasters,Terrorism, increasein aviation fuel prices

8/2/2019 Revolution in Jumbo Jet Market

5/22

SWOT analysis-Boeing

o Strengths:strong brand name incommercial airlines.production of new

low cost aircrafts.Americas largestexporter.

o weakness:

high R&D costs.delays due tosuppliers &manufacturers

Opportunities:increase in air travelinnovative conceptsfor attracting

customersAsian marketgrowthfor defence &commercial aircrafts

Threats:

Airbusincrease in jet fuel

prices,slow down inaviation market

8/2/2019 Revolution in Jumbo Jet Market

6/22

PEST analysis -Airbus

8/2/2019 Revolution in Jumbo Jet Market

7/22

Political factors:

Liberalization of travels between EU and US .

The tension between Middle East and US,

gives a slightly higher preference to a non

US manufacturer and Airbus is an automatic

choice.

8/2/2019 Revolution in Jumbo Jet Market

8/22

Economic factors:

Oil price Increase can decrease demand.

terrorist attacks, wars could affect the

economy.

8/2/2019 Revolution in Jumbo Jet Market

9/22

Social factors:

Change in the life style of people increased

air travel.

Luxurious mode of air travel by people.

8/2/2019 Revolution in Jumbo Jet Market

10/22

8/2/2019 Revolution in Jumbo Jet Market

11/22

PEST analysis-Boeing

Political factors:

The US Govt &(FAA) influence the air

transport.

Regulations by the US & European govts

proves to be a major force for orders for

new aircraft and engines.

8/2/2019 Revolution in Jumbo Jet Market

12/22

Economic factors:

Aircraft manufacturers rely heavily onsubsidies.

Fuel costs,

Risk of terrorism

8/2/2019 Revolution in Jumbo Jet Market

13/22

Social factors:

Anti-US feelingsdue to recent Iraq

& middle east warsaffected onBoeing's sales .

Technologicalfactors:

The supersonic

transport.using computertechnology to builda prototype-cost

effective.Use of lightermaterials.

8/2/2019 Revolution in Jumbo Jet Market

14/22

Boeing as the leader

They have market share of 51.2% They introduced B747 jumbo jet in 1970 Monopolist in the market of jumbo jet

aircraft till 2000. B747 had earned the company $20 billion in

profit for last 30 years. Use mobile defense strategy-the products

includes:Commercial airlinersMilitary aircraft

MunitionsSpace systemsComputer services

8/2/2019 Revolution in Jumbo Jet Market

15/22

Airbus as challenger

Market share of 44.3%. Only competitor to Boeing in

commercial aircraft segment.

Use frontal attack to challenge B747. Came up with A380 to challenge B747

in 400+ seat jumbo jet aircraftsegment

Added extra features to A380-spa,bar, casino.

8/2/2019 Revolution in Jumbo Jet Market

16/22

Marketing Strategy: BOEING

Defensive

Direct point to point flights

Concentrates on efficiency

Introduced sonic cruiser as a highspeed jet but later changed it to787dreamliner.

8/2/2019 Revolution in Jumbo Jet Market

17/22

Marketing Strategy: AIRBUS

Reduced operating cost per seat.

Current Customer Database management

Production efficiency

Relationship marketing myopia Relationship seekers

Relationship exploiters

Loyal buyers Arms length transactional buyers

8/2/2019 Revolution in Jumbo Jet Market

18/22

8/2/2019 Revolution in Jumbo Jet Market

19/22

8/2/2019 Revolution in Jumbo Jet Market

20/22

Whats in store for the future?

Increase in the Asian aviationleading toincrease in no. of aircrafts.

Boeing might come back up as a strong

competitor to Airbus with bettertechnology.

A new competitor like Bombardier or

Embraer may emerge. Boeing may provide stiff competition to

Airbus if it comes with a similar aircraft as

Airbus A380 in that particular segment.

8/2/2019 Revolution in Jumbo Jet Market

21/22

Thank you

8/2/2019 Revolution in Jumbo Jet Market

22/22