Airbus: Innovation and Sustainable Business Development Analysis

This report provides a comprehensive analysis of Airbus's innovation and sustainable business development strategies. It begins with an executive summary outlining the key aspects of the report, including value propositions, financial uncertainties, and technological advancements. The report then delves into Airbus's business model, value proposition development, business operations, supply chain, and financial value capture. It explores the company's competitive advantages, strategic fit, and identification of assumptions and uncertainties. The report also includes a phased development plan to address uncertainties and the selection of innovation tools and techniques, such as Porter Five Forces analysis, Business Model Canvas, Business Environment Map, Innovation Readiness Analysis, Storytelling Canvas, SWOT analysis, Value Chain Analysis, and Customer Journey Canvas. The report concludes with a summary of the findings and includes references and appendices with additional supporting information and analysis.

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).