Premium Essay

Manufacturing Aircraft

In:

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

Similar Documents

Premium Essay

Post Ww2 Aircraft Manufacturing Problems

...Aviation Manufacturing Challenges Post World War II Jason Weber Embry-Riddle Aeronautical University Aviation Manufacturing Challenges Post World War II I. Summary The American aviation industry was in an uncertain era post World War II (WW2). Aircraft manufacturers were suffering large loses as the demand for planes dropped sharply and the market was flooded. This created more supply than demand. Manufactures expected government sales to decline and braced for it. They hinged their hopes on the need for commercial aviation transportation which never came to fruition (Bright, 1978). The resurgence for the industry came in the form of the jet engine. The Navy, being conservative and resistant to change, did not see the need for the jet engine. Unlike the Air Force, the Navy had not encountered jet engine aircraft in combat yet. The Air Force in pursuit of superior air power and national security, was the greatest catalysts in aircraft advancements post WW2 (Converse, 2012). As advancements in the jet engine evolved, aircraft were flying faster and further. The need for stronger structural parts meant the need for new manufacturing techniques (Bright, 1978). II. Problem The problem is that airframe manufacturing was lagging behind the needs set forth by the evolving jet engine. The industry used hand crafting techniques that according to Bright (1978), “In the all-metal piston-engine era, the aircraft industry called itself the "tin benders" (Production: The Payoff...

Words: 710 - Pages: 3

Premium Essay

Bombardier Case Study

...Case Study: Bombardier Serves Multiple Business Markets Background: “Bombardier is all about trains and planes.” Since 1942, Bombardier has been manufacturing transportation products from snowmobiles to planes; and even ventured into rail transportation industry. Now, it has established its name as one of the industry leaders when it comes to manufacturing of planes and trains. Statement of the Problem: As one of the industry leaders, how can Bombardier sustain its market holding amidst rising competition? Objective of the Problem: To be able to identify a market strategy that will help Bombardier sustain or even increase its market share in the industry. SWOT Analysis Strengths: • Knowledge, Expertise, and Adaptability to Customer Demands Bombardier knows what and how to give what its customers want. It offers the perfect ingredient which is important to any transportation business: fuel efficient with low operating costs. It gives importance to its customers’ specifications. It asks where and when its aircrafts will be used. Bombardiers offers wide array of products and services such as manufacturing commercial and corporate planes. Users of its corporate planes may be part owners when they have 50 or more flight hours. In addition, if customers occasionally need a private plane for specific trips, they may avail of Sky jet charter program. These are just few of the services Bombardier offers. With the upgrading of...

Words: 1340 - Pages: 6

Premium Essay

Bombardier Top Markets

...Bombardier Top Markets Bombardier is a world leader in aerospace and rail manufacturing. Bombardier has become the standard in some aerospace sections, including business aircraft, commercial aircraft, amphibious aircraft, specialised aircraft and aircraft training. Some of Bombardier’s top markets include China and Europe. Bombardier fist entered China in 1954, Bombardier has joint ventures with over 40 different airlines in China including Shandong Airlines, Shanghai Airlines and China Express. Bombardier also has a very strong presence within Europe, with ventures in a number of countries including Belgium, the Czech Republic, Denmark, France, Hungary, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, Switzerland and Germany. German is a huge part of Bombardier, it where the majority of the railway engendering and manufacturing happens. Bombardier is expanding its presence all over the world, including expanding its presence in Asia and entering the African market through South Africa. Bibliography Bombardier. (n.d.). About Us. Retrieved from Bombardier the evolution of mobility: http://bombardier.com/en/corporate/about-us Bombardier. (n.d.). Overview. Retrieved from Bombardier China: http://cn.bombardier.com/about_bombardier_in_country.html Bombardier. (n.d.). Overview. Retrieved from Bombardier Germany: http://de.bombardier.com/en/about_bombardier_in_country.html Bombardier. (n.d.). Overview. Retrieved from Bombardier Sweden: http://se...

Words: 266 - Pages: 2

Free Essay

En1320- Drafting an Essay

...moviemaking, Environmental monitoring, oil and gas exploration, and freight transport. Today we have updated the designs and improved the technology so much and will continue to do so. With the growing use of unmanned vehicles it is predicted it could result in more than 34,000 manufacturing jobs and more than 70,000 new jobs in 3 years. “As new jobs are created, additional money is spent at the local level, creating additional demand for local services, which in turn, creates even more jobs (i.e., grocery clerks, barbers, school teachers, home builders, etc.). These indirect and induced jobs are forecast and included in the total jobs created.” Though the economic benefits will not be distributed evenly. The predicted revenues from the top 10 states in terms of job creation and additional revenue as production of unmanned vehicles increase from 2015-2025 is $82 billion. Unmanned vehicles could change and advance the agriculture field of today. Before the use of unmanned vehicles, remote-sensing data had to be collected with satellites, ground instruments, and piloted aircrafts. While unmanned vehicles are less costly then the cost of a manned aircraft, they are also more efficient. Manned aircraft must...

Words: 680 - Pages: 3

Premium Essay

Pricing

...Airlines and will allow perspective passengers to select departure and return locations out of Florida and California. Rockstar airlines will operate aircraft that will capable of transporting a maximum of 20 passengers with a complementary crew of six personnel. The six personnel would consist of a pilot, co-pilot, flight engineer, two flight crew attendants, and a medical officer that would be used to support in-flight emergencies. The flights will have full in-flight facilities and will have the amenity standard equivalent to the first class level afforded by most commercial airlines. Program Assumptions and Limitations There are some additional program assumptions that have been planned to support a new program of this nature. The first assumption made is that an airplane can be manufactured to be used for supersonic passenger transport. Current aviation commercial airlines do not have an aircraft that can perform this function and will require a new aircraft design. With the use of high-technology computer simulation aircraft modeling software, this task can be solved very easily. The built-up of the first Engineering and Manufacturing Development aircraft will be the first major challenge that must be overcame to ensure the aircraft can be built with little or unsurmountable problems. Follow-on manufacturing of the production aircraft required for this program will be less complicated due...

Words: 3144 - Pages: 13

Premium Essay

Boeing's E-Enabled Advantage

...* Challenges * Production inefficiencies * Mature market * Needed to find ways to generate revenue other than airplane sales * Economic downturn and contingency plans * Competition from Airbus that was being subsidized by the govt. * Opportunities * Acquisition of Rockwell and merger with McDonnell Douglas. * Lean manufacturing helped Boeing “greatly reduced out-of-sequence work and parts shortages.” * New technology on 737 that was too advanced for customers. 2. What is the e-Enabled Advantage? How did it link to the company’s strategy? * e-Enabled Advantage is an IT service that Boeing can place into aircrafts that will help airlines collect and analyze data surrounding the aircraft’s maintenance, flight operations, and passenger needs. * Designed to “help airlines cut costs, improve dispatch reliability, reduce delays and cancellations, improve passenger service, enhance aviation security, and provide real-time situational awareness…” (Pg. 199). * Service, not a tangible product. (Pg. 199). * Allows the aircraft to be integrated with airline ground systems. * “…it’s a factory that is ‘unplugged’ from the airline while flying…depriving airlines of valuable information and data that could be used to improve efficiency and safety.” (Pg. 201). * Company’s strategy was shifted from short-term management to long-term value planning. (Pg. 201). * Shifted the company...

Words: 773 - Pages: 4

Free Essay

A380 Sales

...after the initial saturation of the premium market segment, sales are slowing down. However in the subsequent years, new clients and new product configurations increased boosted sales again. The difference comparing the two volumes is pretty considerable (357 of 747 units vs 262 of A380 units). Figure 1 Sales first 11 years comparison Another approach that the industry is taking in consideration for the market success of an aircraft is the sales benchmarked to the first delivery. This different indicator compares the sales performance aligning data of the two airplanes considering as 0 the year of first flight. This info is fundamental because airline companies are often skeptical of placing orders without having seen the first plane in operation. Figure 2 Sales comparison benchmark to first plane delivery In this new view we can notice how differences are more limited. It is noticeable how orders for A380 started way in advance (up to 6 years before the first take off). This phenomenon is due to the suffered genesis of the European aircraft as well as due to the need...

Words: 1850 - Pages: 8

Premium Essay

Ethical Ethics Of Boeing

...Boeing is considered as the biggest airline manufacturer and the most commercially successful. During the 1990s, Boeing began developing a new plane that would be more efficient therefore their solution was the development of the Boeing 787 Dreamliner that was intended to change its way commercial airline work. However the engineering, financial, and most importantly the ethical challenge faced by the Boeing 787 Dreamliner nearly crippled the company. After two fires on two different planes, one on Nippon air which is the commercial aircraft company belonging to the Japanese Government and the other on American airways which was due to the new lithium ion battery that was not firstly sufficiently tested to determine the safety and secondly,...

Words: 1552 - Pages: 7

Premium Essay

Essay On Aircraft Design

...DESIGN PROCESS OF AIRCRAFT Introduction; The aircraft design process is the engeneering design process by which aircraft is designed.These depend on many factors such as customer and manufacture design,safety measures,physical and economical constraints,etc. Design constrains; A design starts with the indeed purpose for example : (A)commercial airlines are designed for carrying passengers and cargo.These are long ranged and have greater fuel efficiency. (B) Fighter gets are designed to perform high speed actions and provide close support to ground troops. (c) few aircrafts have specific missions like amphibious airplanes which have a unique desing that allows them to operate both on land and water also. (d) harrier jump jet has vtolanding these have ability to hover over a period of time. Like this we can understand that the purpose is the cause for the design .and the judgment step for a design. Aircraft Regulations: Another important factor that influences the design of the aircraft are the regulations putforward by thnational authorities, Airports also impose limits on the aircraft,for example the maximum sping span allowed...

Words: 1310 - Pages: 6

Premium Essay

Business Foundation

...Business Environment Analysis Maintenance repair and overhaul is an industry associated with fixing, maintaining and modifying aircrafts and helicopters should they be any defects, scheduled or unscheduled maintenance. It can also be defined as the procedures which main objective is to restore an item to the condition which it can perform its required purpose. The procedures combine technical, managerial and directing of the process. MROs are engaged in providing aircraft, engines and helicopter associated services like maintenance, repair and providing engines, electrical components, instruments and accessories for aircrafts and helicopters while being on par with aviation regulatory agency policies. They also supply spare parts, chemicals, raw material and consumables for aircraft production and manufacturing. MROs also provide and calibrate testing equipment (including pneumatic and hydraulic test benches) which are used for aircrafts and also maintenance tools and aerospace ground support equipment. They also carry out ferry flying (test flights) and ground support operations aiding aircraft taxiing and organizing passengers movement. Maintenance repair and overhaul companies also provide training services and consultancy in areas such as aircraft type rating, quality development , corrosion control and engine mapping.(1) (2) The research conducted on the economical side of this industry reveals that over the past 5 years, MRO industry steadily climbed out of the...

Words: 1178 - Pages: 5

Premium Essay

Economic Advantages of Proactive Maintainance

...Economic advantages of proactive over reactive aircraft maintenance Name Course Institution Instructor Date Economic advantages of proactive over reactive aircraft maintenance The term proactive, in general terms, refers to exhibiting anticipatory or self-initiatory characteristics or behavior. Proactive maintenance in mechanical terms refers to taking steps in order to solve a problem of equipment malfunction before it becomes a bigger issue. The process of proactive maintenance involves taking steps in advance before the occurrence of a future situation, rather than waiting then reacting. On the other hand, reactivity refers to taking action after an avoidable situation culminates into a big problem. Reactivity maintenance approach refers to unscheduled actions taken as a consequence of a systems failure. The reactive approach is basically adopting a “wait and see” attitude to doing things. Aviation is one of the largest industries in the world and directly or indirectly has economic consequences to everyday life. Because of this, it makes more sense to maintain a proactive approach to maintenance of aircrafts as opposed to a reactive maintenance approach. The proactive approach involves predicting potential challenges that might interfere with the operations of mechanical equipment. The industry avoids unscheduled downtimes by adopting a proactive approach. The industry holds operations in most, if not all the countries...

Words: 1353 - Pages: 6

Free Essay

V22 Osprey

...THE BRIEF LIFE CYCLE OF THE V22 OSPREY PROGRAM Sherlyne Thomas Program and Acquisition Management, DEFM 540 Professor: David E. Patton The V-22 Osprey is a tilt rotor military aircraft developed by Bell Helicopter and Boeing Aircraft. Build with the abilities to take off and land vertically along with short takeoff and landing capabilities, this sophisticated aircraft was developed for use by all of the Department of Defense armed forces in support of the nation’s national defense. The concept and eventual need of the V22 began during a mission in the 1980s when the military identified a need for an aircraft that would perform certain capabilities. A request for proposal (RFP) was soon sent out for the preliminary designs with the push for contractors to form joint efforts to create this requirement which resulted in Bell Helicopters and Boeing collaborating to present a successful bid for the contract. Boeing manages the empennage, digital avionics, subsystems, fuselage, and fly-by-wire flight-control schemes. Bell Helicopter manages the wing, transmissions, engine installation, and conducting the final product assemblies. Life Cycle of the V22 Under the pre-acquisition period, the first phase of life cycle of an acquisition is the Materiel Solution Analysis phase where the support needs of the military are assessed. The preliminary acquisition strategy of the procurement combined the operational requirements and risk conditions from all the military branches:...

Words: 1487 - Pages: 6

Premium Essay

Wright Brothers

...Introduction: The Wright brothers, Orville (August 19, 1871 – January 30, 1948) and Wilbur (April 16, 1867 – May 30, 1912), were two Americans who are generally credited with inventing and building the world's first successful airplane and making the first controlled, powered and sustained heavier-than-air human flight, on December 17, 1903. In the two years afterward, the brothers developed their flying machine into the first practical fixed-wing aircraft. Although not the first to build and fly experimental aircraft, the Wright brothers were the first to invent aircraft controls that made fixed-wing powered flight possible Wilber Wright: Birth date and birthplace: April 16, 1867(1867-04-16)Millville, Indiana Orville Wright: Birth date and Birthplace: August 19, 1871(1871-08-19)Dayton, Ohio Family Life: The Wright brothers were two of seven children born to Milton Wright (1828–1917) and Susan Catherine Koerner (1831–1889). Wilbur Wright was born near Millville, Indiana in 1867; Orville in Dayton, Ohio in 1871. The brothers never married. The other Wright siblings were named Reuchlin (1861–1920), Lorin (1862–1939), Katharine (1874–1929), and twins Otis and Ida (born 1870, died in infancy). In elementary school, Orville was given to mischief and was once expelled. In 1878 their father, who traveled often as a bishop in the Church of the United Brethren in Christ, brought home a toy "helicopter" for his two younger sons. The device was based on an invention...

Words: 834 - Pages: 4

Free Essay

New Technology on Aircraft Maintenance

...Impacts of New Technology on Aircraft Maintenance Abstract In this research paper the author identifies several key areas of interest when introducing new technologies in the aviation industry. The majority of the focus surrounds the maintainability of these new technologies and the significant impacts to the maintainers themselves. Much emphasis is given to the people responsible to maintain the aircraft from a human factors perspective. There are many maintenance aspects addressed in the paper to include the impacts on Training and Certification of aircraft mechanics, design considerations in terms of capabilities and ease of access of components and associated equipment. Advancements in procedures, interactive technical manuals and specific emerging maintenance techniques and troubleshooting are introduced from the maintainer’s perspective and those impacts addressed. The key impacts of new technology are summarized for domestic, international, military aircraft operational environments, and the paper concludes with an examination of the advantages and disadvantages of new technologies on aircraft maintenance. Keywords: aircraft maintainability, design for maintenance, personnel training, human factors Impacts of New Technology on Aircraft Maintenance Advancements in technology are a continuous and necessary aspect of our culture. The desire to stay ahead of the competition in both domestic and international environments is what makes our country’s aviation and...

Words: 2709 - Pages: 11

Premium Essay

Embraer Case

...Q1.How has Embraer managed to succeed as a global competitor from within the confines of an emerging economy? Advantages and disadvantages Embraer has derived from the Brazilian context. Strong government support created competitive advantages in the aircraft industry and led Embraer to become a global player. As a factor condition in the determination of national competitive advantage by Porter (Exhibit 1), the government established an environment where Embraer was able to procure raw materials easily through no tax or duty on imports. To support Embraer’s business, related and supporting industries were developed by the Brazilian government setting aeronautics as a priority to grow the nation’s economy. The government tried to develop this industry not only for military needs but also for the civilian sector, so the company enjoyed special privileges such as being the supplier of choice for Federal agencies. These led to the successful entry into the U.S. market through certification from the U.S. FAA, resulting in Embraer capturing a major share of the commuter turboprop market. Advantages: • Embraer’s most profitable years came after the company was privatized with approval from the government in December 1994. In addition to increased flexibility, the privatization allowed Embraer to reduce the workforce and introduce organizational changes such as revamped incentive structures. • The Brazilian economy provided Embraer with lower labour costs (e.g. $10/hour lower...

Words: 1105 - Pages: 5