The Civil Aerospace Industry

The Civil Aerospace Industry

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.
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).
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’/Consumers’ power: The consumers of aircraft i.e. airlines hold the key in writing a script of success for the aircraft industry. The global consumer does not have many alternatives as far as civil aircraft are concerned, but the consumer can still wield enough power to take advantage of the rivalry between Airbus and Boeings.&nbsp.
Opportunities.&nbsp.&nbsp.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).
New technological breakthroughs in IT, computers and electronics industries, providing an opportunity to serve the customer in a better way.
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
Global slowdown (decelerating growth) in airlines business, particularly after the 9/11 incident
Shrinking profit margins for airlines industry, resulting in closing down of many airlines
Fluctuating oil prices and turbulent political scene in the middle-east region
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
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 aircraft manufacturing business (second only to Boeing). Patronage from existing customers.&nbsp.

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