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Manufacturing Aircraft

In: Novels

Submitted By liujiawen
Words 444
Pages 2
Kellogg

School of Management

Business Strategy

STRT 431

Global Aircraft Manufacturing Assignment Synopsis The article chronicling the bidding for Iberia’s 2003 aircraft order provides a unique glimpse into the competition between Airbus and Boeing in the wide-­‐body aircraft market. To illustrate the Five Forces industry analysis framework, we will discuss in class the rivalry between these two firms and the competitive pressures on the industry as diagnosed by the remaining forces. With this analysis in mind, we will then evaluate how strategic decisions by firms in the post-­‐2003 world affected industry profitability for aircraft manufacturers.

Preparation Questions Come to class prepared to discuss the following questions: Analysis 1. Use a Five Forces analysis to understand the threats to (and sources of) profit in the wide-­‐body aircraft market at the time of the Iberia negotiation (2002-­‐2003). Note that the Wall Street Journal article on the Iberia purchase focuses on price competition. Remember that you are looking for the fundamental economic issues that lead…...

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