Name : HAMMAD ALI
Class : BS 5th semester
Subject: Marketing Management
Roll no: BS-IAS-108-S-F18
Submitted to : Sir Fawad Ali
Project : SWOT analysis on AIRBUS
Introduction:
Airbus is the world's largest airliner manufacturer and took the most airliner orders.
Airbus is registered in the Netherlands; its shares are traded in France, Germany and
Spain. It designs, manufactures and sells civil and military aerospace products
worldwide and manufactures aircraft in the European Union and various other countries.
The company has three divisions: Commercial Aircraft (Airbus S.A.S.), Defense,
and Helicopters, the third being the largest in its industry in terms of revenues and
turbine helicopter deliveries.
The company's main civil aero plane business is conducted through the French
company Airbus S.A.S. , based in Blagnac, a suburb of Toulouse, with production and
manufacturing facilities mostly in Europe (France, Germany, Spain, United Kingdom)
but also in China, the United States and Canada. Final assembly production is based
in Toulouse, France; Hamburg, Germany; Seville, Spain; Tianjin, China; Mobile, United
States; and Montreal, Canada. The company produces and markets the first
commercially viable digital fly-by-wire airliner, the Airbus A320, and the world's largest
passenger airliner, the A380. The 12,000th aircraft, an A220, was delivered to Delta Air
Lines on 20 May 2019. By October 2016, the global Airbus fleet have performed more
than 110 million flights, totaling over 215 billion kilometers and carrying 12 billion
passengers. Airbus's registered headquarters is in Leiden, Netherlands, with the
operating head office located in Toulouse. The company is led by CEO Guillaume
Faury and is a component of the Euro Stoxx 50 stock market index.
Airbus Mission Statement:
“Airbus is an international pioneer in the aerospace industry. We are a leader in
designing, manufacturing and delivering aerospace products, services and solutions to
customers on a global scale. We aim for a better-connected, safer and more prosperous
world.”
Values:
The six core values that guide the behaviors of Airbus employees around the world:
• Customer Focus
• Integrity
• Respect
• Creativity
• Reliability
• Teamwork
Vision:
No one has added vision statement of airbus yet.
SWOT Analysis
Strengths:
• Market share – with an estimated market share of almost 63%, Airbus is the
largest aircraft manufacturer in the world, which gives the company a very strong
and powerful position in the industry.
• Global network & international presence – with business operations located in
Europe, the Americas, Africa & The Middle East, and Asia, Airbus has an
incredible international network and presence.
• Innovation & technology – additionally, Airbus is putting a huge focus on
investing in technology, innovation, and next generation manufacturing, more
than any other competitor in the industry.
• Eco-efficiency – and last but not least, another strength that Airbus counts with is
eco-efficiency. The company has been recognized is a leader in proposing and
developing solutions for sustainable aviation.
Weaknesses:
• Delay in delivery – in 2019, Airbus took more orders for aircraft delivery than any
other competitor, including its biggest rival Boeing. However, this caused a delay
in the delivery of the orders, causing the company to accumulate a lot of
backlogs.
• Operational inefficiencies – compared to rivals such as Boeing, Airbus has
gained a reputation of being somewhat inconsistent when it comes to executing
operations. The company is often delaying launches of its new models – for
example, the launch of Airbus A380 was delayed by more than one year. This
weaknesses is definitely something that Airbus could work on.
• High production costs – another key weakness of the company is the fact that it
has higher production costs than its main rival Boeing, which leaves them with
lower profit margins.
Opportunities:
• Boom in Travelling – as the travelling industry is booming due to the growing
percentage of the middle class, and the lower costs for airplane tickets compared
to a decade ago, aircraft manufacturers are receiving more orders than ever. In
fact, even in the next few years, the air traffic is anticipated to grow by 4.3%
annually. According to Airbus, this alone will require “39,200 new passenger and
dedicated freighter aircraft over the next 20 years.”
• Technological advances – over the last few years, the industry has gone
through a lot of innovation processes and technological improvements. This has
allowed Airbus to improve its weaknesses and offer better and faster
performance. Also, the fact that aircrafts are becoming more and more secure
with the new technologies make people want to travel even more.
Threats:
• Competition – the competition in the aerospace industry is practically
considered a duopoly. The reason why is because Boeing and Airbus have a
combined share of 91% for the whole commercial aircraft market globally. This
means that they will not have to fight off small competitors, but also that the
competition between both companies is extremely fierce. Which can be a
significant threat for Airbus.
• Global pandemic – in 2020, the whole world suffered from the COVID-19
pandemic. This alone had a severe impact on the growth of the commercial
aircraft market, as people suddenly had to stop travelling. And although this was
a temporary decrease that is slowly starting to recover, aircraft manufacturers
like Airbus will be affected at least for the next one year.
• Potential competitors in key markets – of course, the fact that Airbus and
Boeing are currently dominating the global market does not mean that this will
last forever. Currently, important markets like China and Russia are also planning
to develop their own commercial aircraft. If that happens, it will most probably
shrink the market share for Airbus.
