Airbus Case Study

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Airbus Case Study Introduction

Airbus is a 50 year old company making innovations in the area of airbus. It is a European based company and created by Roger Beteille, Franz joseph strauss, Henry ziegler, Felix Cracht, Bernard Lathiere. It was founded in 1960 and since is making aerospace products. Airbus is a leading company designing, manufacturing, and delivering aerospace products and solutions. It manufactures commercial aircrafts, helicopters, defence and space. The mission of the company airbus is to connect people over the aerospace by bringing the safety, convenience and joy to the inhabitants of the urban areas. Its vision is to create more liveable situations for urban areas and 

Airbus is successfully achieving its vision over the years.

Table of company background

Company name

Airbus

Type of industry

Aerospace

Headquarters

Europe, Americas, Africa and the Middle East, Asia

Sales/revenue

‎€ 63,707 million

Area served

Europe, Americas, Africa and the Middle East, Asia

Number of stores

238

Competition

Boeing, embraer, lockheed, martin, leonardo company, United aircraft corporation, kawasaki, northrop, grumman, general dynamics and bombardier.

USP

A 319 airliner

Target group

Urban areas

Products

Commercial aircrafts, helicopters, defence and space

Website

https://www.airbus.com

Airbus SWOT

Strengths

Weaknesses

  • Higher growth in the aerospace industry by 7.5% year on year.
  • Leading company (Airbus.com, 2019).
  • Strong competition with boeing.
  • Leading market share by 51% by revenue.
  • Lacks performance in space manufacturing
  • Low demand for helicopters as only 3,900 to 4,400 civilian use helicopters all around the globe.

Opportunities

Threats

  • Growth opportunities in developed and developing economies.
  • Broad scope of manufacturing.
  • Cyber security risks.
  • Stiff competition from leading companies like Boeing.
  • Over dependence upon suppliers.

Airbus Analysis

Strength

Airbus being a leading company in the area of aerospace is spread all over the world. Its global jaws are spread to almost all developed and developing countries and are at a growing rate of 7.5% year on year. As per the case study of Airbus it has been observed that it covers the leading market share of 51% by revenue by high capacity jet liners (Airbus.com, 2019). Airbus Company employs more than 50,000 employees worldwide. Airbus has almost 1500 suppliers all over the world.

Weaknesses

As per the case study of Airbus it can be observed that airbus is a well known company for its great performances in commercial flights. However, in the case of space innovation it is lagging behind some leading companies innovating space craft’s such as Boeing, space x and orbital science (Tekin and Kapan, 2016). There has been a low demand for helicopters as only 3,900 to 4,400 civilian use helicopters all around the globe. Other companies such as bell aircraft, sikorsky are much more active in making helicopters than airbus.

There has been a slow rate of growth in the innovation and manufacturing of helicopters.

Opportunities

Airbus has a strong market in both developed and developing economies and has immense opportunities in growing its economy. As per the case study of Airbus, it has improved and is on its way to more improvement of economic standard of developed and developing economies. It gets great market on developed economies and is spreading its business in developing economies (Chandra et al. 2016). As per the case study of Airbus In developing economies the cost of aircraft centres are much less than other developed economies and so it can expand its business into such economies at a much lower cost.

Threat

Airbus suffers from certain threats that are cyber security and strong competition. Boeing being other leading companies in making aircrafts is a real threat to airbus. Boeing is also in an upper hand in making helicopters and space craft’s. Therefore, as per the case study of Airbus its stands to be real strong and stiff competition for Airbus (Möller et al. 2017). Airbus is subject to threats like not having its own supplies and depending upon other suppliers. So in some cases the manufacturing gets in real slow.

Airbus PESTLE

Factors

Impact

Political

  • Government rules and regulations like Aviation Law, 2019.
  • Support of federal government

Economic

  • Economic growth of airbus year by year by 7.5%
  • Expansion of business into food items for babies.

Social

  • Social requirements needs keep on changing according to consumer mindset.
  • Good and healthy food is a great way to do social good for the society.

Technological

  • Advancement in tactical procedures.
  • Expansion in healthy and nutritious advancement

Legal

  • International Civil Aviation Organization (ICAO) concerned with law and legal policies worldwide

Environmental

  • Concerned with operating eco friendly environment.
  • Conservation of natural deposits and energy.

Airbus Analysis

Political

The company is greatly influenced by public rules and government like the framework of Aviation Law 2019. As it's a worldwide based aerospace space company its needs to follow all the rules, regulations and guidelines provided by the government. It also needs to follow the international law and has to abide by the treaties (Spalart and Venkatakrishnan, 2016). Airbus works under the rules and regulations provided by the federal government and always assure health and safety.

Economic

As per the case study of airbus it can be observed that it is growing at least 7.5% year by year in economically developed and developing countries (Airbus.com, 2019). It is a leading company of aerospace operating worldwide. The economy of airbus a project business is growing year by year in U.S. with various item launch particularly concentrating on the nutritional food for babies.

Social

Social requirements keep on changing according to the changing society and airbus is always looking forward to new innovations and up gradation of the society. Airbus has expanded its business into producing nutritional and healthy food for babies keeping in mind the social needs of the society.

Technological

As per the case study of airbus it can be observed that airbus a leading company in the aerospace market is always innovating tactful measures and procedures to upgrades its manufactures. This is the reason why airbus is the top leading company. Airbus makes world class aircrafts which are used worldwide by different airlines (Hallstedt et al. 2015). It does not restrict itself and is always open to new ideas of creation. Its attitude of open to new ideas allowed it to expand its manufacture into production of nutritious and healthy food for babies.

Legal

Airbus works worldwide and has no or minimum legal issues in the market or with the government. It abides by all the rules of International Civil Aviation Organization (ICAO) and as per the case study of Airbus it can be observed that it produces it financial statements on a regular basis and without any failure.

Environmental

Airbus always serves to protect the environment by maintaining an eco-friendly environment and discarding its waste to transform into reusing, recycling and reducing. It is committed to an eco - friendly environment and with conservation of natural deposits and energy.

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Reference List

Airbus.com, (2019). About Airbus corporate topics. Available at: https://www.airbus.com/content/dam/corporate-topics/publications/media-day/GMF-2018-2037.pdf [Accessed on 01 September, 2019].

Hallstedt, S.I., Bertoni, M. and Isaksson, O., (2015). Assessing sustainability and value of manufacturing processes: A case in the aerospace industry. Journal of Cleaner Production, 108, pp.169-182.

Möller, C., Schmidt, H.C., Koch, P., Böhlmann, C., Kothe, S.M., Wollnack, J. and Hintze, W., (2017). Machining of large scaled CFRP-Parts with mobile CNC-based robotic system in aerospace industry. Procedia manufacturing, 14, pp.17-29.

Spalart, P.R. and Venkatakrishnan, V., (2016). On the role and challenges of CFD in the aerospace industry. The Aeronautical Journal, 120(1223), pp.209-232.

Tekin, E. and Kapan, Ö., (2016). Composite manufacturing data management in aerospace industry. Procedia CIRP, 41, pp.1039-1042.

Chandra, N.S., Raghavendra, N.V. and Shekar, G.L., (2016, July). Aerospace industry of India: Analysis of strengths, weaknesses, opportunities and threats. In 2016 7th International Conference on Mechanical and Aerospace Engineering (ICMAE) (pp. 512-516).

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