airbus

1AIRBUSINDUSTRYTEAMREPORTGLASGOWCALEDONIANUNIVERSITYGRADUATEDIPLOMA3BUSINESSMANAGEMENTCOURSEINSTRUCTORSKENNYHUTHONSTEVENBARCOURSETUTORJOHNPENLINGTONGROUP4GROUPMEMBERSTONYJUEHATHIMABDULAZEEZRYOALEX2CONTENTPageNo.INTRODUCTION3OVERVIEW5BOUNDARIESOFTHEINDUSTRY6CharacteristicsofAirbusMainMarketSegment7MacroEconomicForces9AIRBUSNEWSTRATEGY10DELIVERINGGROWTHTHROUGHINOVATION11MICHAELE.PORTER5MAINFORCESANDHOWTHEYAFFECTAIRBUSINDUSTRY12ANALYSISOFAIRBUSCOMPETITORS14CompetitionbyProduct14CompetitionthroughEngineEfficiencyandSelection15EffectofCurrencyontheIndustry15Safety16MULTICULTURAL16THEEFFECTOFCROSS-CULTURALISSUES17SUMMARY18REFERENCES193IntroductionAirbusisaleadingaircraftmanufacturer.Thecompanytakesthecustomerasthecentreoftheconcept,businessknowledge,technologyleadingpositionandmanufacturingefficiencymakesitsinvolvementinindustryforefront.In2010,Airbustotalrevenueswere527.7milliondollars;atpresenthasafirmgraspofhalftheglobalcivilaircraftorders.Thecompanyalsothroughprofessionaltechnologyappliedinthemilitary,putintransportmarketdevelopingitsbusinessscaleandproductscope.Airbushassold10057planes,with400customers.SincethefirstAirbusaircraftproductionin1974,Airbushasdeliveredmorethan6581aircraft.Airbusisdedicatedtohelpingairlinesmaximizeaircraftfleet,andincreaseprofitability.Airbushasestablishedtheperfectglobalcustomerservicesystem,accordingtotheworldoperators,andprovisioncoversallthefieldsoftechnicalsupport.AirbusisheadquarteredinToulouse,France,andisareallyglobalenterprise,hasabout57000employees,intheUnitedStates,MiddleEast,ChinaandJapan,establisheditswhollyownedsubsidiariesinFrankfurt,Hamburg,Beijing,SingaporeandWashingtonhassparepartscentre,inMiami,Toulouse,BeijingandHamburghastrainingcenterincludingmorethan150infieldserviceoffices.Airbusalsoestablishedcooperationwithglobalcompaniesandcollaborationrelationshipwithmorethan30countriesand1500companiesformingaglobalsupplier.4Asanindustryleader,Airbusisdedicatedtobecomingarealenterpriseofenvironmentalprotection.Airbusistheworld'sfirsttoobtaintheISO14001authenticationaerospaceenterprise,certificatethatcoversallAirbusfactoriesandproducts,throughaircraftproductionandoperationduringthewholelifecycle.5OverviewAirbusisoneofthecompanieswhichhaveleadedthemanufacturerofjetairlinersandmilitaryairliftersforthepast40years.Thecompanycreatednewairplanesoneafteranotherandbecamefamous.ThestartofAirbusindustrywasaconsortiumofEuropeanflyingpracticeinaircraftin1970.Inthosedays,Americancompanies;inparticularBoeing,LockheedandMcDonnellmostlyoccupiedthemainaircraftmarket.Therefore,thefirstaimofAirbuswastocompetewiththesecompanies.Thecompany,establishedinFrance,UKandGermanyin1967,addedSpaintothisindustryin1971.Atpresent,thereareabout57,000employeesat16citiesinfourEuropeanUnioncountries.ThemainmarketofAirbusisAsia-pacificandEuropecountries.Theairplanes,whichhavebeenmadetwin-aislejetatmiddlesizeandlong-rangefreights,willbemorepopularandprofitableinthecoming20years,beforethereweremoredemandwithasingle-aisleandsmallone.AccordingtoHanlopn,P,“Manyairlinesareownedbystategovernment.”(GlobalAirlines2ndedition.1999:p.67).So,thedemandsstronglydependoneachcountrystrategy.Itisthereforeheavycompetitivemarket.WhilethenumberofordersanddeliversofAirbuswaslowerthanothercompaniesby2001,itiscontrastedtoday.Itisabouthalfofthejetairlinersthatairbusproducesintheworld,thereasonwhy,thecompanyconstantlyrequiresinnovationandnewtechnologies.Theintroductionsof6automatingflightengineersanddigitalfly-by-wirecontrol,inthe1970sand1980s.Thecompanyhasbroughteffectiveresultstoimproverelatingtobodyoftheairplanes,costofproductionandtimebetweenconceptionsofplanes.Asaglobalcompany,AirbuscollectedinFrance,Germany,SpainandBritain16factoriesaswellastechnicalandprofessionalskills.Everyplantisresponsiblefortheproductionofcompleteaircraftparts,andthenarrivesatAirbusinToulouse,HamburgorTianjingeneralassemblybranch.Airbusindustrynetworkfurtherdeveloped,includinginNorthAmericabuiltaregiondesigncenter,inRussia,ChinaandIndiaareestablishedengineeringtechnologyresearchcenter.TheBoundariesoftheIndustryTheprimarybusinessofAirbusispassengerairplanemanufacture,but,Airbusalsoproducesmilitaryaircraft,freighteraircraftandcorporatejetliners.Inarapidlychangingworld,Airbusmilitaryaimstoperformhumanitarianandpeacekeepingmissions,deliveringgoodsbyairandevacuatingtheinjuredinperil.Furthermore,Airbusmilitaryproducesmanyplanes,A400M,A300MRTT,C212CN235C295andtheA330MRTTcontainsair-to-airrefuelingcapability,soA330enablestofly3600nmortocarry20tonsofpayloadforfighters.However,ifmilitarywouldliketosupportmissionsinhostilearea,C212CN235C295isbetterflyingatlowerlevel,taking-offandlandingfromshortandunpavedterrains.Secondly,Airbusalsomanufacturesfreightaircraft,A330-200F,A380FandBeluga7A300-600ST.Notonlythenewmid-sizelong-haulfreighter(A330-200F)butalsothreedecksofcargo(A380)areefficientforfreight.Inaddition,Belugaisproducetotransportaircargo.Moreover,Airbusoffersarangeofaircraftforcorporate,VIPandgovernmentaviation.VIPWidebodies(A300,A340,A350XWBandA