Case Study On Airbus

INTRODUCTION- Why Airbus?

Airbus produces approximately half of the world’s jet airlines. Porter stated that aircraft suppliers have more profit compared to airlines; therefore, we decided to find out what kind of business strategies help the company excel, particularly Airbus is competing with Boeing. On the other side, business strategies will support the company’s future design processes in the industry and technology needs. Airbus does not only manufacture passenger jets, they also have military and aerospace projects with its parent company. These details might be interesting to learn more about the jet airline industry.

OVERVIEW (Company profile)

Airbus is the world’s leading commercial aircraft manufacturer whose customer focus, commercial know-how, technological leadership and manufacturing efficiency have propelled it to the forefront of the industry. Airbus Group is based in Toulouse, France. Airbus Group has been a part of European Aeronautic Defense and Space Company since 2000, which have other similar groups such as Astrium, Cassidian and Eurocopter. Recently in 2014, Tom Enders, Airbus group executive restructure the company into three divisions and change the name of company EADS to Airbus. The current organizational structure comprises three divisions including Airbus, Airbus Defense and space and Airbus helicopters.

Airbus is considered a world leader in the air transport marketplace with over 57,000 employees and 16 manufacturing locations across Europe. Airbus has a global network of more than 200 customers, over 1,500 suppliers and around 80,000 annual expense reports.

Airbus is focusing global manufacture of the commercial aircraft. Over 40 years of developing technological innovation of its product...

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....V. (EADS) Vision 2020 was established in 2007 to provide growth, changes and new goals for Airbus that are to be achieved by 2020. The vision is to have a well-balanced EADS that will include profitability, focus on core, become a worldwide leader in air and space platforms and systems, mission-critical service provider, and become eco efficient. In order to obtain the above balanced revenues must be available and this can happen when EADS reduces dependence on Airbus and increases revenue streams from non-Airbus divisions. This strategy focuses on increasing the revenue services from 10% to 25%. Globalization is also a primary concern because EADS plans to increase internationalization for geographic expansion by increasing its non-European sourcing from 25% to 40% which in turn will make the procurement marketing and global sourcing activities achieve its goal.