Boeing Company enjoys the status of being the largest aerospace company in the world. Its history dates back to 1935 and various key events have occurred. In 1935, the Company’s personnel formed Machinists Union and one year later, it signed a labor agreement with Machinists. In 1943, the War Labor Board endorsed a salary freeze which led to protests by the Machinists but in 1945 the war came to an end with the company lying off more than 70,000 workers (Friend et al., 1). In 1948, the Union organized a strike to advocate matters related to superiority and a year later, the union won its appeal to stand for Boeing workers in the Teamsters Union. Later in 1967, a public-housing plan in Kent was funded courtesy of Machinists Union (Schumacher, Markus, and Muin 3). As a tactic to enlarge its business, it amalgamated with McDonnell in 1997 and afterward in 2001 it moved its headquarters from Seattle to Chicago. In 2010, Boeing promised to boost employment opportunities from its assembly line in South Seattle (Tafs, William and Griffin 21).
On the other hand, Airbus Group is a global aerospace and defense conglomerate with its headquarters situated in France. The company was instituted in July 2000 and underwent various transformations such as forming the European Aeronautic Defense and Space Company to become the second biggest aerospace company. In 2008, Airbus was honored with a contract amounting to approximately $36 billion to restock tankers of the American Air Force. In 2013, Airbus erected an assembly line in America as a tactic to create additional supply chain. Airbus amalgamated with Chinese partners and in 2013, it thrived in producing A350 XWB parts. Airbus took to a fresh level of production when it revealed single-aisle production in 2014 and later in the same year, it launched the model aircraft A330neo. The company enlarged its subsidiaries and formed Airbus Defense and Space in 2014 (Barmeyer, Christoph, and Mayrhofer 430).
The Boeing Company is an aerospace corporation manufacturing jetliners for commercial purpose as well as space, defense, and security systems (New York Times 1). The company’s main products include Commercial and military jet, sophisticated information and communication systems and Launch devices (PR Newswire 1). Their jets are designed to be used for military purposes or for transporting business people. Communication and launch systems also targets government security agencies and large corporate. On the other hand, airbus group has three business segments namely Airbus, Airbus Helicopters, and Airbus Defense and Space (Airbus Group 1). The top products of Airbus Group include Aircraft family’s seats, Military aircraft, missiles, Communication systems, satellites and Space rockets. The military aircrafts targets government defense agencies while aircraft family seats targets business conglomerates.
Competitive advantages and weakness
One of the strengths of Boeing company is that the organization has yearly sales of over 96 billion dollars as of 2015 (Perry 1). Also, it has multiplicity of divisions and services around business planes, defense, space and others. An extensive base of workers amounting to over 159,000 employees is also a competitive advantage that the company enjoys. However its major weakness is that, the organization is too big to easily make rapid decisions (Reed 1). Also the company has matured in processes and operations, hence making it harder to enhance innovation because of a changing market.
Airbus group has its own strengths and weaknesses and one of its main strength is its annual revenue of over 67 billion dollars as of 2015. Also the company is owed by states as opposed to strictly individuals (Sparaco and Morrocco). It also has a large pool of workers and it also offers diverse services such as defense and space services and airbus helicopters. The main weakness is the fact that the organization specializes and focuses mostly on the European market. Secondly the large size of the company makes it more inflexible in advancing and rapid innovations. Thirdly, the inclusion of states as shareholders might limit the global operations of the organization in regions that have dissimilar trade policies with the shareholding nations.
Barmeyer, Christoph, and Ulrike Mayrhofer. “How has the French context shaped the organization of the Airbus Group?” International Journal of Organizational Analysis 22.4 (2014): 426-448.
Friend, John D., et al. “Multi-beam method and apparatus for removing and replacing major structural components while converting an airplane to efficiently carry freight.” U.S. Patent No. 6,257,522. 10 Jul. 2001.
Schumacher, Markus, and Andrew Muin. “Seating group of passenger seats especially for an aircraft cabin.” U.S. Patent No. 5,829,836. 3 Nov. 1998.
Tafs, William D., and John C. Griffin III. “Methods and systems for automatically tracking information during flight.” U.S. Patent No. 7,577,501. 18 Aug. 2009.
Airbus Group. Airbus Group: We make it fly.
New York Times. Boeing Company. NYT, 2016.
PR Newswire. Boeing Commercial Airplanes Product Lineup Positions Company for Future
Perry, Mark. “Fortune 500 firms in 1955 v. 2015; Only 12% remain, thanks to the creative destruction that fuels economic prosperity.” 12 October 2015. American Enterprise Institute. 9. USA Today.
Sparaco, Pierre and John D. Morrocco. “French Government Grapples With Aerospace Strategy”.” 30 June 1997. Aviation Week and Space Technology .