Report | INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT

this assessment is related to the first assessment and the order for the first assessment is 1053911. Minimum 15 APA style reference. word count 2000

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 1
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 2
Executive summary
The reports put an in-depth focus on the value proposition of the company and an
innovative measure applied by the organization to capture the market. In this report, we get a
clear idea of the company's financial and technical uncertainties. The report discusses the
strategies implied by Airbus Corporation, for making money and funding the business. Airbus
corporation aims to maintain the highest standards of compliance and transparency in their
business practices and allow technological innovations for the growth of the company.
The goal of the company is to provide more customer satisfaction by implementing more
advanced technologies such as AI implementations in their aircraft for high navigational
guidance and ensure customer satisfaction. Airbus corporation has implemented a modern
entertainment system so that their passenger can have a delightful experience with them. From
this case study, we can find out that Airbus corporation has a firm grip on the aviation market
and is one of the top aviation companies in the world. It has a competitive advantage of its rivals
such as Etihad Airways, Jet Airways and so on for its technological advancements.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 3
Table of Contents
1. Introduction..................................................................................................................................5
2. Business model description.........................................................................................................6
3. Value proposition development...................................................................................................6
4. Business operations development................................................................................................7
5. Supply chain development...........................................................................................................7
6. Financial value capture................................................................................................................8
7. Competitive advantage................................................................................................................8
8. Strategic fit...................................................................................................................................9
9. Identification and assessment of assumptions and uncertainties.................................................9
10. Phased development plan to address uncertainties..................................................................10
11. Selection of innovation tools and techniques..........................................................................10
11.1 Airbus Porter Five Forces Analysis...................................................................................10
11.2 Business model canvas......................................................................................................11
11.3 Business environment map................................................................................................12
11.4 Innovation readiness analysis............................................................................................13
11.5 Storytelling canvas.............................................................................................................14
11.6 Strengths, weaknesses, opportunities and threats..............................................................17
11.7 Value chain analysis..........................................................................................................18
11.8 Customer journey canvas...................................................................................................19
12. Conclusion...............................................................................................................................20
References......................................................................................................................................21
Appendix........................................................................................................................................23
Appendix 1: Business Canvas Model........................................................................................23
Appendix 2: SWOT Analysis....................................................................................................23

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 4
Appendix 3: Value Chain Analysis...........................................................................................24

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 5
1. Introduction
The report shows the financial value of a reputable business organization. The
organization provides customer satisfaction and delivery of value proposition on specific
products and services. Airbus is a European multinational company with the operating capital of
€ 6,370 crores which was incorporated on 18 December 1970. Airbus corporation has its
headquarters in the Netherlands. This report highlights the value propositions, business model
and competitive advances in the aviation business economy.
Figure 1: Airbus Logo
(Source: Airbus, 2019)

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 6
2. Business model description
Airbus is a leading manufacturer on international marketing which provides aircraft
design of catering in the airspace. It has a unique model to run their business globally with
eleven production houses. From the beginning, it was an active player in the industry of aviation.
It is making the transportation of aircraft very safe and secure. The main focus of the company to
spread globally with its different marketing strategy that includes catering the plane to various
nations.
Figure 2: Components of Business Model
(Source: Daft & Albers, 2015)
3. Value proposition development
The initial value proposition which airbus offers to their customers to communicate with
them across their customer care department. The pilot of the aircraft has access over the several
airframes for which the company trains a pilot for four days (Daft & Albers, 2015). The Current
value proposition of the Airbus Corporation shows that it expects to have a 4.4% per annum
growth for the next 10-20 years. The investments of €2.1 billion towards the digital and
innovation part of the company are making the company to have a secure field in the field of the
aviation market.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 7
Figure 3: Components of Value Proposition
(Source: Khosravi & Jha-Thakur, 2018)
4. Business operations development
The mission of the company is to research and develop a new segment of the company
toward the event of a clean and renewable source of energy, to solve problems relating to
wastage and other issues (Caldera, Desha & Dawes, 2018). Airbus Corporation has developed
new technologies that have helped aircraft to be more fuel-efficient. In addition to this, the
company proposed to create a new prototypical aircraft with renewable electricity with the help
of solar panel integration.
5. Supply chain development
Airbus corporation is focused on creating a well-developed supply chain, for providing
them with a high level of inventory accuracy and deliver a high level of services. Airbus is
looking for complete automation in its supply chain management (Khosravi & Jha-Thakur,
2018). The Automation in the supply chain will be responsible for tracking the life cycle of the
aircraft, look after invoicing and billing and operational expense forecasting.
6. Financial value capture
The research and development Section of Airbus corporation has undertaken different
market analysis and concluded that there is a possibility of creating more advanced aircraft,

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 8
which would use a cheaper source of energy. This method taken by the company will create
future value for the company (Kumar & Garg, 2017). It has helped Airbus to capture an active
market in terms of the financial aspect. The merging of the two companies Airbus Corporation
and Dassault Aviation has provided the company with an additional equity capital of €5.2billion.
7. Competitive advantage
The most critical element of an organization is to deliver its products to the consumer
efficiently and provide them with great value for their money. The outcomes of Airbus
corporation are designed in such a manner that they give a delightful journey to their customers,
which helps them create a lasting impression on them and generates more customer base. To stay
ahead of the competitive market, Airbus corporation is applying innovations to their aircraft and
overall structures of the business, such as more safety for passenger point of view (Schroeder,
Anggraeni & Weber, 2018).
Figure 4: Competitors of Airbus
(Source: Airbus, 2019)
8. Strategic fit
The most important aspects of the organization are to develop a competitive market
strategy, which is designed in such a way that it fits the current consumer demand for the

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 9
company. With accordance to several market survey, it can be concluded that the innovations
and marketing strategies implied by Airbus Corporation, was able to meet the customer demand
(MacCarthy, Blome, Olhager, Srai & Zhao, 2016).
9. Identification and assessment of assumptions and uncertainties
Airbus corporation has taken different steps to implement innovation. Though a proper
market survey was done, the trends in the market are uncertain. The management of Airbus
Corporation has come up with a few structural flaws which may affect the productivity of the
company (Leung, Noble, Gunn & Jaeger, 2015). To overcome the uncertainty in technological
and finance section, Airbus has adapted specific methods (Kusi-Sarpong, Gupta & Sarkis, 2018).
10. Phased development plan to address difficulties
Airbus Corporation has developed a robust strategic plan to diminish the uncertainties
that the company is facing regarding the implementation of new technologies. Airbus has created
the VOLTAIR aircraft, which is a prototype with modern AI included technologies and low
emission gases, with proper environmental guidance (Lee & Olson, 2016).
 The administration of Airbus develops a desirable business help-line department
 A well-structured business model is created for building employee strength and perform
in a structured manner.
11. Selection of innovation tools and techniques
11.1 Airbus Porter Five Forces Analysis
Porter five forces are used for strategic, shaping and shifting of the competitive
landscapes for and organization.
The Airbus takes several tools to plan their business strategy with the help of porter five forces
analysis:
Forces Description
Bargaining power of suppliers (Low) The supply chain of the airbus included 3M,
Honeywell, SIEMENS, Rolls Royce and other

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 10
industrial partners (Baxter, 2019).
Bargaining power of buyers
(Moderate)
The consumer of Airbus is minor and major
brands of airlines all over the globe.
Threats of substitutes (Low)
Due to excessive demand for aircraft and to
compete with other aircraft manufacturers, the
quality, technology, and supply the item on
time is a significant issue for Airbus.
The threat of new entrants (Low)
There is no barrier to entering the aircraft
industry, so the entrance of the new player is
a threat to the company.
Level of competitive rivalry (High)
In the broad industry of aircraft, the existing
competitor of airbus and catch the target
market is an as big challenge for Airbus.
Table 1: Porter’s Five Forces Analysis of Airbus
(Source: Glick, 2018)
11.2 Business model canvas
A business canvas model is a tactical management model and a lean startup pattern for
developing new or documenting an existing business model. It is a visual chart with elements
describing an organization product, value, proposition and infrastructure.
 Customer Relationship: The Airbus is targeting a marketplace where they can build a
relationship with their customers and fulfil their requirements by supplying a good
quality product. Hence, to maintain the costing and value by the needs of their customer
is a significant thing for Airbus.
 Customer Segment: The Airbus created its importance for the various kinds of customers
and identified the valuable customer.
 Distribution Channel: The company has identified the channel of the process to reach
its customers in the international platform. The survey and review have taken by this
company to source the best route.
Key partners
 GEDC
Key activities
 Corporate Governance
Value Proposition
Communicate the strategic value of the

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 11
 IFEES
 Alouette Association.
 Elles Bougent.
 Les Cordees
de la
Reussite.
Customer
relationship
The company is
focused on
generating a good
relationship with
their customers by
upgrading with more
modern techniques.
Such as enhancing
onboard facilities.
Airbus is targeting to
maintain a good
relationship with
their customers
supplying good
services at low
prices.
 Ethics & Compliance
 Airbus Foundation
business by identifying the economic and
financial issues concerning
Customer Segments
The Airbus corporation created importance
among the customers by making a
true brand value.
Key Sources
 Demo
Channels
The company has
Cost
structure
Revenue
structure

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 12
Aircraft.
 Computer
peripherals.
 Hanger.
 Employee
Base.
identified the
channel of the
process to reach its
customers in the
international
platform.
In the terms of
cost, the
company
provide life-
time working
account
models
In the terms of
revenue, they
have followed
operating
income, net
income and total
assets.
Table 2: Business model Canvas
(Source: Airbus, 2019)
11.3 Business environment map
Business environmental is a tool for identifying the opportunities, key trends and market
forces.
Various forces are affecting the business environment:
 Market forces: There are multiple issues in the market of aircraft industry such as
customer switching costs, shrinking or growing segment, changing pains, jobs and gains.
 Key trends: The factors like technological innovation social trend of the environment,
regulatory constraints are the subject of matter.
 Industry forces: The environmental forces that affect the company’s objectives. The
existing competitor of the market, raising value chain and providing the new technology.
 Macroeconomic forces: Trends of the market, conditions of the global market, macro
trends of the market, proper acceleration of resources and low or high prices from various
commodities (Halpern & Graham, 2018).

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Figure 5: Business Environment Map
(Source: Bocken, Rana & Short, 2015)
11.4 Innovation readiness analysis
The innovation readiness tool focuses on the leadership support, strategic alignment of
resources and the business portfolio development (Banjongprasert, 2019).
Innovation readiness analysis is a model which can determine the business strategy of the
Airbus:
 Organization design: The airbus using this model for betterment in the work process. It
focuses upon the team empowerment, innovation for incentive system and access over
their resources.
 Leadership Support: It is accessing the alignment of strategy, allocates the resources and
making a portfolio for business.
 Innovation practice: Airbus measures various kinds of tools to meet the business
expectation. The skills and process of training and tools to support innovation.
Market forces Key trends
Industry forces Macroeconomic
forces

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 14
Figure 6: Innovation Readiness Analysis
(Source: Banjongprasert, 2019)
11.5 Storytelling canvas
The tools of this model help the Airbus to reach their business goals. There are several
steps in the process, such as transformation ideas from involved to simple, build the success
story and demonstrate the existing power of the company and sold out the project in an effective
way.
Subject
Airbus is trying to
capture the aviation
economy with new
and innovative ideas,
for providing
customer comfort
and increasing the
growth of their
business
organization.
Goal
The goal of the company is
to generate a new customer
base and imply innovative
ideas for achieving profit.
Audience
The customers are focused on getting world-
class services from such a reputed brand as
airbus.
Before Set the Scene Make your Conclusion After
Leadership Support
Innovation practice
Organization design

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 15
The customer of
Airbus has a positive
impact on them.
They want to know
how well Airbus
wants to build their
relationship with
their customers and
what are the
advantages they will
get for their
relationship with
them.
From a customer
point of view, the
company should
introduce more ways
for customer flight
experience
enhancement, such
as good on-board
food, comfortable
seating and high
multimedia
entertainment.
point
Airbus
corporation is
providing best in
the class seating
capacity at
affordable
pricing and
added customer
safety with AI
guidance.
Airbus
corporation is
able to create a
market base
for them and
the customers
are satisfied
with the
services they
are offering.
Airbus
corporation is
looking for
creating more
customer by
including
innovation of
technologies,
such an AI
navigational
system.
Table 3: Story Telling Canvas
(Source: Airbus, 2017)

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 16
11.6 Strengths, weaknesses, opportunities and threats
SWOT analysis is strategic planning of techniques used to help a person or a business
organization, for identifying the strengths, weaknesses opportunities and planning. It can also be
stated as an internal framework of identifying and analyzing the internal and external factors that
have an impact on the organization. The benefits of Swot analysis is that, with its help the
limitations of the organization can be identified (Button, 2017).
Factors Description
Strengths
Strong production of commercial aircrafts
Strategic areas of action for ramp-up
Global distributor with a high market share
Competitive portfolio for strong backlog
Weakness
Poor performance in space and defence
segment
Demands for helicopters
Irregularities for corruption problem of
Europe
Opportunities
Developed a chance for economic growth
Reach market leadership in space and defence
segment
Improvement of Unmanned Aerial System
(UAS)
Threats
Dependency on suppliers
Competition with global players
Risk assessment in cybersecurity
Table 4: SWOT Analysis of Airbus
(Source:Phadermrod, Crowder & Wills, 2019)

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 17
11.7 Value chain analysis
The value chain analysis is a process of dividing various activities of the business into
primary and support activities and analyzing them and keeping in mind their contribution
towards the value for the final product.
There is a significant role in the value chain analysis to detect the tools of supply of the product
for Airbus:
[Refer to Appendix 3]
Factors Description
Inbound logistic Company has appointed some significant
buyers for the company.
Operations
Operate the supply chain as per the demand is
an essential tool for the company and
accounted that supplies.
Outbound Logistic
The Airbus has intermediaries to sell the
product in the international market and
licensed them with profits.
Marketing and Sales
To promote the product in the various channel
and maintain the supply chain as per the value
of the company.
Service Airbus tries to build customer faith to
compete in the aircraft industry.
Table 5: Value Chain Analysis of Airbus
(Source: Donovan, Franzel, Cunha, Gyau & Mithöfer, 2015)
11.8 Customer journey canvas
 Pre-service period: Use social media to reach the maximum number of customers is
considered a pre-service period. To promote and launch the final product comes through
the initial advertisement of the product.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 18
 Service period: Mapping and identify the route to reach the customer is recognized as the
second step of journey canvas. Culminate in the evaluation of the different experience of
the customer is the main tools for the Airbus.
12. Candid and critical self-analysis
While undergoing this project, I have gained a lot of knowledge regarding innovation and
sustainable business development done by Airbus. This project helped me to understand how an
organization operates while undergoing changes. One of the biggest strength which I found out
that I was able to capture each and every information very quickly which helped me to complete
the task within the time period that was given to us.
Communication was one of my biggest weakness which I found out as I was not able to freely
communication with people involved with this project. Due to this I was not able to gather
adequate data which could have helped me in giving more information for this project.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 19
13. Conclusion and Recommendation
According to the report, it can be concluded that the new strategies and innovation
implied by Airbus corporation has proved to be beneficial for the organization. The report gives
us the idea that Airbus is focusing on innovation and applying new technological methods for
generating more customer base and stay ahead of their competition.
This report shows a detailed analysis of the business canvas to understand the financial
position of the company. The report gives us a comprehensive overview of the entire business
structure of the company, along with with the economic and technological uncertainties faced by
the company and the ways they have used to overcome this.
It can be recommended that along the advancement in innovation, the company
should also focus to promote their brand in market with the help of various online platforms in
order to attract more customers. The innovation and changes in technologies are all done to
improve the service for the customer due to this reason the customers’ needs to be aware of the
changes which will directly increase the sales of Airbus.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 20
References
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Innovation Readiness and Innovation Performance: Empirical Evidence from
MICE Venues. Retrieved 2 October 2019, from
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%20Jantima%20Banjongprasert%20(An%20Assessment%20of%20...).pdf
Baxter, G. (2019). A Strategic Analysis of Cargolux Airlines International Position in the Global
Air Cargo Supply Chain Using Porter’s Five Forces Model. Infrastructures, 4(1),
6. doi: 10.3390/infrastructures4010006.
Button, K. (2017). Wings across Europe (1st ed.). London and New York: Routledge.
Caldera, H., Desha, C., & Dawes, L. (2018). Exploring the characteristics of sustainable business
practice in small and medium-sized enterprises: Experiences from the Australian
manufacturing industry. Journal Of Cleaner Production, 177, 338-349. doi:
10.1016/j.jclepro.2017.12.265
Daft, J., & Albers, S. (2015). An empirical analysis of airline business model
convergence. Journal Of Air Transport Management, 46, 3-11. doi:
10.1016/j.jairtraman.2015.03.008
Halpern, N., & Graham, A. (2018). The Routledge Companion to Air Transport
Management (1st ed., p. 440). New York: Routledge.
Khosravi, F., & Jha-Thakur, U. (2018). Managing uncertainties through scenario analysis in
strategic environmental assessment. Journal Of Environmental Planning And
Management, 62(6), 979-1000. doi: 10.1080/09640568.2018.1456913
Kumar, D., & Garg, C. (2017). Evaluating sustainable supply chain indicators using fuzzy
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10.1108/bij-11-2015-0111
Kusi-Sarpong, S., Gupta, H., & Sarkis, J. (2018). A supply chain sustainability innovation
framework and evaluation methodology. International Journal Of Production
Research, 57(7), 1990-2008. doi: 10.1080/00207543.2018.1518607
Lee, S., & Olson, D. (2016). Convergenomics. London: Routledge.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 21
Leung, W., Noble, B., Gunn, J., & Jaeger, J. (2015). A review of uncertainty research in impact
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Glick, S. (2018). Retrieved 3 October 2019, from
http://economics-files.pomona.edu/jlikens/seniorseminars/PAC2004/Drafts/
boeing.pdf
Airbus. (2017). Retrieved 3 October 2019, from https://www.airbus.com/content/dam/corporate-
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chain.pdf

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 22
Appendix
Appendix 1: Business Canvas Model
Appendix 2: SWOT Analysis
Figure 7: Aspects of SWOT Analysis
(Source: Caldera, Desha & Dawes, 2018)

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 23
Appendix 3: Value Chain Analysis
Figure 8: Value Chain Analysis
(Source: Fujitsu, 2018)