INTRODUCTION
Until 1980, the American manufacturers in the aerospace industry enjoyed an exclusive control of the aerospace industry despite the entry of the European-based Airbus industry in the late 1960s. The American manufacturers dominated the industry at the time that it was difficult for the European manufacturers to compete, but just like all industries resources and capabilities are fundamental building blocks for a firm’s strategy.
Some business organizations especially those in the airline industry must face situations whereby to succeed depends on both internal and external factors. Boeing enjoyed the global market leadership of the aerospace industry for several decades. As it is common for most market leaders, Boeing fell …show more content…

Boeing aircraft was expensive for frequent flying. In 1990, Airbus launched 4 families of products while Boeing launched only two. Airbus planes are newer in design and cheaper to own than Boeing. Airbus differentiated itself from Boeing by innovating different products. Airbus took a technological lead by offering common cockpit configuration. Installing similar cockpits across models means that airline companies could now use the same crew for different models of Airbus planes. The aircraft design of Airbus also differentiate it from Boeing. For example, the Airbus A-320 was designed with 7.5 inches wider fuselage than that of Boeing 737 giving airline space to add more seats in six across configuration. In 1984 Airbus created a first commercial flyer jet with fly-by-wire controls and side sticks and was designed to meet the requirements of short distance routes.
Airbus’s strategy seems to be a low cost leader. It also capitalises on its current competitive advantage in manufacturing efficiency. Airbus is using their ability and excellence in design to ensure they meet their strategic target of cost leaders.
Boeing’s response to Airbus strategy
Boeing was slow to respond when Airbus entered the commercial aircraft segment of the aircraft industry. Perhaps Boeing believed their presence and market dominance would allow them the luxury of not being threatened by new entrants. Giving the capital requirements, manufacturing complexity