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Boeing and Its Main Competitor

Autor:   •  May 3, 2014  •  Case Study  •  529 Words (3 Pages)  •  1,266 Views

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Because of the higher cost of Boeing's aircrafts, the cheaper one of Airbus's aircrafts will be widely selected by small-medium operators. The Boeing's orders have been significant replaced by Airbus' orders since 1998. However, frequent delays to the Airbus program caused several customers to consider cancelling their orders in favour of the refreshed Boeing's aircrafts. Therefore, the Boeing's orders were little bit higher than Airbus in 2013.

In order to remain the competitive advantage in the sale orders, Boeing should need to further consider in the cost effective of the production to provide a more attractive price. Moreover, Boeing should also keep their supply in time to avoid the delay of products.

Boeing's market share in the industry has been significant decreased from 82% to 47% in about 20 years. Boeing seems hardly to retain its competitive advantage to against Airbus. Airbus may be a new industry leader instead of Boeing due to the cheaper price of Airbus' aircrafts.

One of the mission of Boeing is to retain the leader in the market has already been challenged by the above information. In order to keep back the leader of the industry, Boeing now improve its technology to provide more capability, fuel saved and longer distance aircrafts to help the operators save their money in long term. However, some of small-medium operators may not confidence in the future benefit and only interest in the short-term advantage such as discount on the selling price, Boeing should make more advertisements to promote and give more confidence to the potential customers.

Boeing has a higher revenue, net profit and gross margin than Airbus. However, the its net profit margin is less than Airbus. This indicates that the income from the Boeing's aircrafts is satisfied, but the money spending in other operating expenditures are not managed

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