Research Paper: Airbus

Pages: 8 (2279 words)  ·  Bibliography Sources: 10  ·  Level: Master's  ·  Topic: Business  ·  Buy This Paper

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[. . .] This area has been the target of a great deal of foreign direct investment in recent years. In fact China Daily reports that

"The city attracted a record $10.8 billion foreign direct investment in 2010, up 20.3% compared with the previous year. "Tianjin maintains strong momentum in attracting foreign investment, as investors with real strength prefer business efficiency, better services and high-level labor resources to preferential policies," Yang said in an interview during the three-day China-Europe High-level Political Parties Forum. The city is also making efforts in building a low-carbon economy and has accordingly raised standards on project selection for investors. In addition to high energy-consuming and high-polluting projects, low-end processing projects, largely relying on cheap labor costs, are no longer welcomed by the city (Lan, 2011)."

Additionally the strategy that will be in use for the next five years has been revamped. For instance the revamped strategy is designed to place a greater emphasis on the needs of investors (Lan, 2011). Additionally the strategy is designed to be conducive with sustainable growth that will be beneficial to business and the local economy.

Government's strategy for influencing or intervening in trade

For Airbus one of the most utilized strategies for influencing or intervening in trade can be found in trade embargos. In some instance individual nations prohibit trade with other nations whose political or human rights practices are viewed as questionable or cruel. These embargos can prevent airlines from being able to purchase planes from Airbus. Tariffs are also a major issue that Airbus must often confront when engaging in international trade.

The company's expansion strategy

The company has embraced strategies that will allow the company to continue to expand in the years to come. Although the company already has a global presence the company still aims to continue expansion. A great deal of the success that Airbus has realized is associated with its ability to create new and innovative types of aircraft. This can be seen today through the development of the double-decker aircraft. Such aircraft provide the customers with a new and exciting flight experience ("Expansion"). This type of expansion is also important because it forces the competition to also expand the type of commercial aircraft that it produces.

The company's marketing philosophy

Over the years the company has utilized several unique marketing strategies. One of the first strategies involved flying an Airbus 300 over North America to show American airline companies what they were missing having not yet purchased an Airbus built airplane ("A Market Breakthrough"). Early on in its existence the company also used a marketing strategy of allowing airlines to lease aircraft for several months at a time before committing to purchase such aircraft. Today the company has embraced a philosophy of producing the most innovative aircraft to appeal to airlines and their passengers. The company wants the quality of the aircraft it produces to speak for itself. Because the company's products are established as some of the most well-made-in the world, the company has been able to gain brand loyalty and brand recognition.

Recommendations

The primary recommendation for Airbus is to adapt a long-range plan that will allow the company to remain successful while the global economy continues to shift and change. This would entail ensuring that the company's global expansion is sustainable over the long run. At the current time the company has a great deal of the market share for aircraft. However, this may change In the future as Boeing continues to expand and many fleets are relatively young reducing the likelihood that airlines will continues to purchase planes in the quantities that they have over the last decade. With these things in mind the company might want to consider diversification as it has already embraced the production of military aircraft. This type of continued product diversification is absolutely necessary to maintaining the success of the company.

Works cited

"A350 XWB Family." Retrieved from: http://www.airbus.com/aircraftfamilies/passengeraircraft/a350xwbfamily/

"A330/A340 Family." Retrieved from: http://www.airbus.com/aircraftfamilies/passengeraircraft/a340family/

"A320 Family." Retrieved from: http://www.airbus.com/aircraftfamilies/passengeraircraft/a320family/

("A380 Family." Retrieved from: http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/

"A Market Breakthrough." Retrieved from: http://www.airbus.com/index.php?id=814

Benassy-Quere, Fontagne L., Horst Raff (2011) Exchange-rate Misalignments in Duopoly: The Case of Airbus and Boeing, The World Economy, 34 (4) 623-641.

"Expansion." Retrieved from: http://www.airbus.com/corporate/people/company-evolution/expansion/

Irwin, D.A. And N. Pavcnik (2004), 'Airbus vs. Boeing Revisited: International Competition in the Aircraft Market', Journal of International Economics, 64, 223 -- 45.

Lan, L. 2011 Tianjin eyes more FDI in 2011. Retrieved from: http://www.chinadaily.com.cn/business/2011-05/19/content_12538138.htm

"People and Culture." Retrieved from: http://www.airbus.com/company/people-culture/ [END OF PREVIEW]

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Airbus.  (2011, June 25).  Retrieved May 21, 2019, from https://www.essaytown.com/subjects/paper/airbus-one/9939135

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"Airbus."  Essaytown.com.  June 25, 2011.  Accessed May 21, 2019.
https://www.essaytown.com/subjects/paper/airbus-one/9939135.