Boeing and Airbus: Strategic Management Case Study - Analysis

This case study analyzes the strategic management approaches of Boeing and Airbus in the airline industry. It examines the environmental scanning and forecasting methods used by both companies, highlighting the forces influencing their strategies, including changing customer needs, technological advancements, and competition. The study explores the relevance of these forces in the current market and evaluates the future visions of both companies, comparing their strategic decisions regarding aircraft development and market positioning. It concludes by assessing the potential for success of each company's strategy, emphasizing the importance of adapting to market changes and customer demands. The analysis references various academic sources to support its findings, providing a comprehensive overview of strategic management principles within the context of the airline industry.

Running head:
Strategic management
Name of the student:
Name of the University:
Author's note:

1Heading
Introduction
The aim of this paper is to study a case scenario related to strategic management for
international businesses. In order to understand the various factors that influence management
approaches. The case study being analyzed in this paper is that of Boeing Airlines and Airbus
which are two of the leaders in the airlines industry (Ansoff et al.)
Discussion
Forces that favoured both scenarios
Both Boeing and Airbus have been influenced by various factors due to which they had to
develop new strategies to improve their market sustainability, profitability and market
capture. These forces include:
 Changes in personal needs and expectation: the customer of the airlines indistries
have a dynamic range of needs and expectation that show high fluctuations. This is a
force based on the external environment that can provide a significant opportunity
for the business.
 Advent of new technologies: new technologies adopted by airlines companies have
caused a disruption in the operational processes in order to provide better performance
and more efficiency of the business. This is an external force that can provide new
opportunities for the business.

2Heading
 Competition: strict competition from other businesses is another force that is
influencing the changes in buisness operations in the given case scenario. This
external force can be a significant threat for the business.
 Increased focus on passenger safety and experience: over the years importance of
maintaining customer experience and safety standards have also become important for
airlines industries because of the high competition on the market and also due to the
safety incidents that have occurred to several passenger airlines thereby raising
concerned among passengers. This internal factor can provide strength for the
business to grow.
(Wheelen et.al.)
Which of these forces are still relevant at the current date
In current world all of these factors still seems to be relevant because a focus on customer
experience and safety can help to gain customer loyalty and therby gain competitive
advantage in the market. The decision to develop larger aircrafts to transport more passengers
is also relevant considering the Hub and Spoke method and an increasing congestion in the
air traffic hubs (Albers et.al.)
Which vision of the future was correct
Considering the future visions of Boeing and Airbus, it could be seen that both of them were
correct in their own accord as there has been an increase in both the necessities for bigger and
larger aircrafts but also because of an increased demand for cost effective and affordable air
fare for passengers (Wheelen et.al.)
Which company's strategy has the best chances of succeeding

3Heading
Considering the significant increase in customer demands for safer and more comfortable
flights have allowed airline businesses to utilize this need to promote better safety and quality
standards fkr it's services which can be seen in case of Boeing Airlines with the creation of
larger aircrafts (Ansoff et.al )
Conclusion
From the study above, it can be concluded that both Boeing and Airbus have different
approaches to capture it's customer and improve it's market performance by adotoong new
technologies and respond to changes in the market in an appropriate manner. However, it can
be assumed that the approach adopted by Boeing can provide more potential for success.

4Heading
Reference
Ansoff, H. Igor, et al. Implanting strategic management. Springer, 2018.
Wheelen, Thomas L., et al. Strategic management and business policy. Boston: pearson,
2017.
Albers, Sascha, et al. Strategic management in the aviation industry. Routledge, 2017.