Airbus Analysis

3301 words 14 pages
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Strategic Management

Airbus Analysis

Executive Summary

The goal of the following report is to provide a detailed analysis of Airbus using the following analytical tools: PESTEL, Stakeholder, SWOT, Porters Five Forces, VRINE, and Porters model of competitive advantage. In this report I will describe how each analysis supports the decisions of Airbus and helps identify any problems or issues facing Airbus based on the outcome of each analysis. This report will show that the analytical tools used will support Airbus’s direction and their growth in the aerospace industry, and their mission of competing against Boeing for more global market share.

Introduction

Airbus was created as an …show more content…

Other external threats that may affect Airbus are the possible increase of terrorist attacks, which can slow down air travel similar to the attacks of 9-11. The global economy is a threat as well; as the economy continues to struggle air passenger travel decreases reducing the demand of new jets.

PESTEL Analysis
Political Factors
With Airbus being a consortium of European governments, Airbus had a definite competitive advantage over Boeing in the aerospace industry in Europe. Airbus did not have to worry about the trade agreements within the European Union (EU), and the multi-governmental financial backing gave Airbus an advantage as well. Airbus was already a global manufacturing company with locations in Germany, France, England, and Spain and being a part of the EU had little to worry about in regards to taxation laws.
Economic Factors
With manufacturing locations throughout Europe, being part of the EU, and using the Euro currency, Airbus eliminated the exposure to exchange rates and trade tariffs. The purpose of being a member of the EU and the Euro is to provide free trade to all of the members within the EU. This provides a competitive advantage over Boeing, as Boeing would have to pay these tariffs to sell into Europe. Because of Europe’s strict labor laws, Airbus relies on non-union contract workers. Airbus had the flexibility to increase or decrease the workers hires on contract on the basis of its order-book position

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