Opportunities and Competition Analysis of Airbus

This article discusses the opportunities and competition analysis of Airbus, the leading Aerospace Company in the world. It covers the company description, opportunities, competition analysis, and balance scorecard.

Managerial accounting

TABLE OF CONTENTS
Company Description......................................................................................................................3
Opportunities...................................................................................................................................3
Competition analysis.......................................................................................................................4
Balance score card...........................................................................................................................4
References........................................................................................................................................6

COMPANY DESCRIPTION
Airbus is said to be the leading Aerospace Company all over the world; the company is the
largest aircraft producer when it comes to France (Airbus, 2018). The company is engaged in
designing, manufacturing and supplying aircraft based on military aircraft while ensures its
product offering through a wide array of the service network.
OPPORTUNITIES
The opportunities for Airbus are inclusive of growth in emerging economies, international
market leadership present defence and segments of space and growth of UAS which is
Unmanned Aerial Systems. There are several opportunities present for Airbus in the market, that
is there is increasing demand in the air industry from the side of customers and the same had
generated a higher market value over the few decades, this absolutely shows the best opportunity
for Airbus to gain effective competitive edge over the competitions. In addition, there is a rapid
expansion in passenger traffic, because of the increasing middle class in the developing nations,
to this note Airbus has the best scope to capture the market and earn market share. One more
opportunity is that the technology today is highly advanced, and the same can assist Airbus in
improving their weakness while delivering faster yet effective results.
There is also the existence of a higher demand for air travel in the present century, regardless of
the young generation. Also, the mid-class consumers and expertise pursuits prefer travelling
from air basis in opposition to other travelling modes (Bhasin, 2018). Further, the demand is
likely to increase multiple over the next few decades. Better economic conditions are also the
sign of higher opportunities; it can be said that the recession was the history and the global
economy has reinforced from the time of recession and has risen above the same. It can be
asserted that the employment conditions has increased better on a global basis, which has
resulted in grown expenditure on travel as well as tourism. The increase of the mid-class is stated
as another driver of growth in the aircraft industry. Technological innovation is also stated as a
key driver, and Airbus is required to give more of considerations towards the same. Airbus has
generated some best models with better fuel efficiency and comfort, but their production systems
stay as delayed most of the time (Eren, Prach, Koçer, Raković, Kayacan and Açıkmeşe, 2017).

However, there is scope to make improvement in the same, and they have to consider it as an
opportunity to mitigate competitive pressure. There is also an immense backlog of orders, and its
amount is equal to billions, this also shows a higher demand and greater opportunity.
COMPETITION ANALYSIS
The competition level in the aircraft industry has intensified. However, there is a limited number
of rivals, which means the competition, is fierce but the competitors are less. The major players
of Airbus in the market are inclusive of Embraer, Boeing and some others. These companies are
making higher investments in quality and forming helicopters, aircraft based on commercial –
class military and aeroplanes that make use of first-class technology and finer value and
performance. At present era, customers have more options and choices, and each brand is
chasing quality and prices in context with technology and efficiency. Moreover, the existing
competition can keep up with low prices in order to make the industry less appealing to the new
entrants (Abhijeet Pratap, 2016). As compared to the production and industry of aircraft, the
Airbus face heavy competition against one another; the new entrant threat is said to be moderate
simultaneously. Many potential customers have their sites of production present in France; on the
other hand, it will be justifiable for the Airbus to have set and logical operations when it comes
to sales, consumer service and any other related aspects. Clearly, the competition level is highly
concentrated, and the two major brands that dominate the market are said to be Airbus and
Boeing but still the some of the other competitors have embraced their existence in various areas
(He and et al., 2017). At the same time, Airbus is full of backlog, and it is continuous in regards
to the safety measures and quality aspects. Further, these variables have made the entire rivalry
more intense amid existing players. It can be said that, whatever advantage is gained by a brand
in terms of its quality, there is always the threat of competition.
BALANCE SCORECARD
The balanced scorecard is stated as the semi-standard structured report, which can be applied to
keep the operations of business activities on track, for this aspect, The Airbus Group has the
strategic goals to enhance the customer satisfaction with providing an effective response to them
regarding their feedbacks , delays or any other problem. The strategic goal of Airbus BSC is to

make a reduction in cost and time in the area of production and maintenance (Fedotova,
Tikhonov and Novikov, 2018). For maintaining the same, the aircraft company has taken several
measures such as maintenance downtime, ratings by customers, training and development of
employees, considering the rates of delay, accidents and flight tests. By considering this aspect,
the company has considered various initiatives and models like fuel efficiency, piloting
efficiency while giving consideration and first priority towards flight safety as well.
They have provided innovative solutions for customers to make rapid improvement in the
manufacturing process while the company has conducted timely surveys on customer
satisfaction, on social media as well. They have also delivered superior after sales services in
order to keep up with the brand image and customer satisfaction (CORPORATE
RESPONSIBILITY & SUSTAINABILITY REPORT, 2014). In their internal business of BSC
they have adopted design commonality in each and every fleets so as to assure compliance
towards the requirements, and have managed supply chain management along for providing
secured and qualified fleets and services The Airbus internal business management has set
strategic priorities for several business procedures that are able to form top-notch stakeholder
and shareholder value and satisfaction.
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REFERENCES
Airbus, (2018). Airbus in France [Online]. Retrieved from <
https://www.airbus.com/company/worldwide-presence/france.html>
Bhasin, H., (2018). SWOT analysis of Airbus [Online]. Retrieved from <
https://www.marketing91.com/swot-analysis-of-airbus/>
CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT, (2014).
RESPONSIBILITY MADE BY AIRBUS GROUP [Online]. Retrieved from <
https://www.airbus.com/content/dam/corporate-topics/financial-and-company-
information/airbus-group-crs-2014.pdf>
Eren, U., Prach, A., Koçer, B.B., Raković, S.V., Kayacan, E. and Açıkmeşe, B., (2017). Model
predictive control in aerospace systems: Current state and opportunities. Journal of
Guidance, Control, and Dynamics, 40(7), pp.1541-1566.
Fedotova, M.A., Tikhonov, A.I. and Novikov, S.V., (2018). Estimating the Effectiveness of
Personnel Management at Aviation Enterprises. Russian Engineering Research, 38(6),
pp.466-468.
He, S., Hipel, K.W. and Kilgour, D.M., (2017). Analyzing market competition between Airbus
and Boeing using a duo hierarchical graph model for conflict resolution. Journal of
Systems Science and Systems Engineering, 26(6), pp.683-710.
Pratap, A., (2016). Airbus Porter’s Five Forces Analysis [Online]. Retrieved from <
https://www.cheshnotes.com/2017/12/airbus-porters-five-forces-analysis/>