Airbus is one of the world's leading aircraft manufacturers. Its mission is to provide aircrafts that are best suited to the needs of the market and support these aircraft with superior services. The company is based in France and it employs more than 50000 employees in four European countries. Airbus recently delivered more orders than Boeing but the value of aircraft sold by Boeing was greater.
New technologies are constantly emerging and airline companies are looking for planes that are most satisfying and entertaining for the passengers. Wireless internet connection and mobile phone services in airplanes is a new technology that is not fully developed or applicable because of safety issues and complicated agreements with the internet service providers and mobile phone network companies. This technology can provide Airbus with a marketplace advantage over its main competitor Boeing.
We have recommended the most suitable strategies for Airbus to adopt in order to incorporate wireless communications services in its planes. We have supported our recommendations with an assessment of the company core competencies, the market, the technology itself, and the risk accompanying these strategies.
II. Company Overview and Core Competencies
Airbus consistently captures approximately half or more of all orders for commercial airline companies and it delivered more than 370 airplanes last year. Most of its plants are located in Europe, but it currently aims to outsource around 60% of its production by allocating work to India and China in order to achieve higher growth. Company spokesman, David Velupillai, mentioned in one of his public statements regarding Airbus’s outsourcing that the company would keep its core competencies to itself. One of the core competencies he was referring to is Deeside’s ability to deliver high-quality airplane wings. Deeside is considered to be a center of excellence for Airbus’s wing manufacture. It had a lot of success in the different...