Civil Aerospace Market Case Study Example | Topics and Well Written Essays - 1500 words

Civil Aerospace Market - Case Study Example In the following discussion we'll analyze the industry structure of the civil aerospace market in general and the two main companies in particular. vi. World's second-largest defense company. Boeing Integrated Defense Systems provides end-to-end services for large-scale systems that combine sophisticated communication networks with air-, land-, sea- and space-based platforms for global military, government and commercial customers i. FAA (US) Aerospace forecast for the period 2006-2017 states that, 'By 2017, U.S. commercial air carriers are projected to fly 1.6 trillion ASMs and transport 1.07 billion enplaned passengers a total of 1.256 trillion passenger miles. Passenger trip length is also forecast to increase by more than 120 miles over the forecast to 1,171.9 miles (up 10.2 miles annually). iv. New entrants in the business particularly from India, China and Japan. These countries are trying very hard to tap the market with state owned companies getting full support from respective governments Headquartered in France and employing about 60,000 people worldwide Airbus has made a commitment to itself that it will remain in the 40-60 percent range as far as market share is concerned1. During 2006 also Airbus was able to capture 44 percent market share with 824 new firm orders worth US$75.1 billion. Buyers'/Consu... v. Highly investment intensive and labor intensive business. Opportunities i. FAA (US) Aerospace forecast for the period 2006-2017 states that, 'By 2017, U.S. commercial air carriers are projected to fly 1.6 trillion ASMs and transport 1.07 billion enplaned passengers a total of 1.256 trillion passenger miles. Passenger trip length is also forecast to increase by more than 120 miles over the forecast to 1,171.9 miles (up 10.2 miles annually). ii. New technological breakthroughs in IT, computers and electronics industries, providing opportunity to serve the customer in a better way. iii. New product development efforts are focused on the Boeing 787 Dreamliner, a super-efficient airplane that is expected to be in service in 2008. Threats i. Global slowdown (decelerating growth) in airlines business, particularly after the 9/11 incident ii. Shrinking profit margins for airlines industry, resulting in closing down of many airlines iii. Fluctuating oil prices and turbulent political scene in the middle-east region iv. New entrants in the business particularly from India, China and Japan. These countries are trying very hard to tap the market with state owned companies getting full support from respective governments v. Widespread opposition of the outsourcing moves by the unions at Boeing as well as from other unions in the country, fearing widespread retrenchments. SWOT analysis for Airbus Headquartered in France and employing about 60,000 people worldwide Airbus has made a commitment to itself that it will remain in the 40-60 percent range as far as market share is concerned1. During 2006 also Airbus was able to capture 44 percent market share with 824 new firm orders worth US$75.1 billion. Strengths: Leading position in the