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Mgt 723 Dr. Martina Musteen Group study Airbus A380 Daisy Hsieh, Joe Wu Sandra Wu, Sean Yeh
Aerospace Manufacturer Industry Five-Forces Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Low Low High Low High ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Neutralized Negative Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Group – FAA Standards Sources: The Airbus A380 Logistics and financing
Airbus vs. Boeing Wikipedia http://en.wikipedia.org/wiki/ Forever New Frontiers Setting the standards Slogan 153,000 (2006) 55,000-57,000 Employees $61.5 billion (FY 2006) € 23.5 billion (2005) Revenue Commercial airliners Commercial airliners Products Aerospace & Defense Aerospace Industry W. James McNerney, Jr. CEO Thomas Enders, CEO Key People Chicago, Il, USA Toulouse, France Headquarter 1916 (Seattle, WA) 1970 (Airbus Industrie) 2001 (Airbus S.A.S.) Founded Public An EADS Subsidiary Entity Boeing Airbus
A Framework of Competitor Analysis Source:  Adapted from M.-J. Chen, 1996, Competitor analysis and interfirm rivalry: Toward a theoretical integration,  Academy of Management Review,  21: 100 – 134. 2– Airbus and Boeing
Tangible Resources ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Intangible Resources ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Capabilities ,[object Object],[object Object],[object Object]
Value Chain Margin Margin Support Activities Primary Activities Firm Infrastructure Human Resources Management Technology Development: developed at diff sites & integrated Procurement : 75% external procurement, (collaborative supply chain) ,[object Object],[object Object],[object Object],[object Object],Marketing & sales ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply Chain Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],eSupplyChain
Four Criteria Framework – A380 Innovative Material Yes Yes Yes Yes Valuable? Rare? Costly to Imitate? Non-Substitutable? Competitive Implications Yes Yes Yes Yes Aerodynamics Technology Yes Yes Yes Yes Supplier Integration Ability Yes Yes Yes Yes Marketing & sales
Core Competencies ,[object Object],[object Object],[object Object],[object Object]
Business Level Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Corporate Level Strategy ,[object Object],[object Object],[object Object]
International Strategy
Recommendation ,[object Object],[object Object]
Rationale to Build A380 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Issues Solutions
Conclusion ,[object Object],[object Object],[object Object]
A380 Highlights Wikipedia http://en.wikipedia.org/wiki/Airbus_380 A380 program cost:  US$17 billion A380 unit cost: US $319 million Market demand researched 1991 Boeing canceled similar project 1993 Began developing Very Large Airliner, A3xx 1994 "Large Aircraft Division" formed 1996 Dec. 12, Commercial launch of the A3xxx ( € 8.8 billion) 2000 Airbus consortium was merged 2001 Component-manufacturing starts 2002 First engine delivered 2004 Maiden flight 2005 Certification and delays 2006 Airbus delivers first A380-800 to SIA 2007
A380 vs 747-8 Wikipedia http://en.wikipedia.org/wiki/Airbus_380 Higher Cheaper Operation cost Normal Wider Taxiway US$300 million US$319 million Cost 450 525-853 Capacity 970,000 lb 1,235,000 lb Max takeoff weight 224 ft 261 ft Wingspan 10,254 mi 10,521 mi Range 0.855 mach. 0.85 mach. Speed 747-8 A380

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Airbus

  • 1. Mgt 723 Dr. Martina Musteen Group study Airbus A380 Daisy Hsieh, Joe Wu Sandra Wu, Sean Yeh
  • 2.
  • 3.
  • 4. Strategic Group – FAA Standards Sources: The Airbus A380 Logistics and financing
  • 5. Airbus vs. Boeing Wikipedia http://en.wikipedia.org/wiki/ Forever New Frontiers Setting the standards Slogan 153,000 (2006) 55,000-57,000 Employees $61.5 billion (FY 2006) € 23.5 billion (2005) Revenue Commercial airliners Commercial airliners Products Aerospace & Defense Aerospace Industry W. James McNerney, Jr. CEO Thomas Enders, CEO Key People Chicago, Il, USA Toulouse, France Headquarter 1916 (Seattle, WA) 1970 (Airbus Industrie) 2001 (Airbus S.A.S.) Founded Public An EADS Subsidiary Entity Boeing Airbus
  • 6. A Framework of Competitor Analysis Source: Adapted from M.-J. Chen, 1996, Competitor analysis and interfirm rivalry: Toward a theoretical integration, Academy of Management Review, 21: 100 – 134. 2– Airbus and Boeing
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Four Criteria Framework – A380 Innovative Material Yes Yes Yes Yes Valuable? Rare? Costly to Imitate? Non-Substitutable? Competitive Implications Yes Yes Yes Yes Aerodynamics Technology Yes Yes Yes Yes Supplier Integration Ability Yes Yes Yes Yes Marketing & sales
  • 13.
  • 14.
  • 15.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. A380 Highlights Wikipedia http://en.wikipedia.org/wiki/Airbus_380 A380 program cost: US$17 billion A380 unit cost: US $319 million Market demand researched 1991 Boeing canceled similar project 1993 Began developing Very Large Airliner, A3xx 1994 "Large Aircraft Division" formed 1996 Dec. 12, Commercial launch of the A3xxx ( € 8.8 billion) 2000 Airbus consortium was merged 2001 Component-manufacturing starts 2002 First engine delivered 2004 Maiden flight 2005 Certification and delays 2006 Airbus delivers first A380-800 to SIA 2007
  • 22. A380 vs 747-8 Wikipedia http://en.wikipedia.org/wiki/Airbus_380 Higher Cheaper Operation cost Normal Wider Taxiway US$300 million US$319 million Cost 450 525-853 Capacity 970,000 lb 1,235,000 lb Max takeoff weight 224 ft 261 ft Wingspan 10,254 mi 10,521 mi Range 0.855 mach. 0.85 mach. Speed 747-8 A380