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Thinking globally, Act locally Globalization & the Global Markets
Boeing , a multinational defense and aerospace corporation in America has numerous business units that offers products and services based on five principle segments namely Boeing Capital corporation (BCC), Global Service and Support (GSS), Network and Space systems (NSS) and Boeing Military Aircraft (BMA) all under its defense space and security.
Its other business segments include Engineering, Operations and Technology that (EO&T) that provides the company with functional and technical capabilities as well as research and development (R&D), information technology, intellectual property management, management of environmental remediation, technology strategy development and test and evaluation (Lewis & Jon 147) . Today, its commercial jetliners include business jets and other families of airplanes such as Boeing 777, 767, 757, 747, 737, and 717 among others.
Source: www.jet-airlinezz.blogspot.com
On the other hand, Airbus Company is an airline giant company made from ingenuity of companies from countries in Europe such as Spain, UK, Germany and France. Globally, it is one of the largest airline industries dealing with business travel and vacation. To effectively meet demands in the market, it updates its planes and creates new ones.
Internationally, it has become a large employer with up to 55,000 employees in Spain, UK and France. It has subsidiaries in Russia, US and Japan. Some of its airbuses include A300, A320 and A380 among others with a capacity of carrying approximately 555-840 people on their two decks.
Source: www.widebobyaircraft.nl
Globally, both Boeing and Airbus exist as largest airline industries. In their bid to target global markets, the airline companies have adopted physical evidence and process strategies that are aimed at improving their Customer Relationship Management (CMR), and as a tool for creating customer loyalty, satisfaction and managing customer relationship.
Both the strategies ensure creation of a fast, effective and efficient way of service provision. In terms of service delivery, the airlines play an important role in determining the quality of service they offer to customers. The commitment of both airlines in giving quality service is part of their new sustainable development strategy. At the check-in of their first class, customers are treated to an experience of concierge-style consoles that are highly advanced.
Additionally, airbus has a first class lounge wing with attractive cafes, exquisite spas and rooms that are peaceful where travelers can read. It is important to note that the brand of this airliner has become popular worldwide as one of high quality, reliability, integrity and safety care and service.
Developing and delivering services that keeps customers attracted and satisfied is the main goal of Airbus and Boeing airlines. This goal aims at keeping the customers loyal, satisfied and attracted and works well in increasing the airlines profitability, market share, customer equity, and revenue.
It is imperative to note that meeting the needs of customers internationally is determined by the ability to know the right market segment to target, at what time and which areas to avoid. Both airlines focus on the customers unmet needs, the market gap and their potential offerings (Francis & Alex 645).
For instance, Airbus airlines achieves its superior returns and growth on invested capital by using new offerings to target existing market segments, using existing offerings to target new segments and addressing new offerings and new segments (Raman & Andrew 495). It is important to note that it has made this possible through support from Return Driven Strategy and its tenets.
The strategy to meet the needs of the global market done by Airbus and Boeing companies has been on the basis of organizing its local Genuine Assets to work better than other companies, confronting the changes in the market segments, understanding the size of the market segments and meeting the unmet needs of the customer. To balance its growth with rival airliners, it has improved the functions of its airline facilities such as the check-ins and the boarding gates, the pier and the wing and its business and first class lounges.
Achieving Strategic, Sustainable Competitive Advantage in the Global Marketplace
Taking care of the needs of the tourism industry, marketing industry, and the transport needs of various societies have seen its steady growth in terms of returns. Through its products and services, the airline company has continued to increase its market segments through innovation its offerings through key areas of distribution and sales of its products as well as offering support and quality service.
Changes in marketing and business trends today have put pressure on most firms to increase their competitive advantage by developing and building focus on core competencies.
According to Gorjidooz and Bijan (9), due to intensive competition and increasing uncertainty, both Airbus and Boeing airlines have been able to have a sustainable advantage and make tremendous gains because they have articulate strategic intent, competencies and resources that are non-substitutable and unique (Gorjidooz & Bijan 10).
As such, in order to stem their growth, the airliners have targeted market segments ranging from individual customers to large global corporations. This strategy, based on the foundations of Return driven strategy and other strategy tenets has seen Airbus and Boeing gain a strong branding of their offerings, dominating targeted market segments through superior operations and innovation of offerings.
In order to attain peak production and yet remain competitive and profitable, both airlines have employed innovative capacity, strategic flexibility, organizational learning and effective technology among other core competencies (Francis & Alex 640). Additionally, Airbus and Boeing companies have been able to gain competitive advantage through identifying strategic capabilities that are appropriate, comprehensive planning and proper allocation of their resources.
According to competitive advantage theory, high market price of products should be pegged on high-quality of the products. Being able provide their high quality services at a relatively low cost and still maintain competitive advantage indicates that both companies have been able to restructure their capabilities in such a way that they offer their services at a low cost possible.
Conclusion
To sum up, developing and delivering services that keeps customers attracted and satisfied is the main goal of most airlines. As aforementioned, this goal aims at keeping the customers loyal, satisfied and attracted and works well in increasing the airlines profitability, market share, customer equity and revenue.
Therefore, the concept of customer perceived value and service effectiveness in airlines demands that orientation services be created among airline internal suppliers, creation of service benchmarks and an increase in infrastructure outlay.
Besides, it needs innovative capacity, strategic flexibility, organizational learning and effective technology among other core competencies. Both Airbus and Boeing ability to gain competitive edge is attributed to their functions of intangible organizational learning versus technological tangible competencies.
Works Cited
Francis, John & Alex, Pevzner. Airbus and Boeing: Strengths and Limitations of Strong States . Political Science Quarterly 121.4 (2006): 629-651
Gorjidooz, Jayad & Bijan, Vasigh. Aircraft valuation in dynamic air transport industry . Journal of Business & Economics Research 8.7 (2010): 1-16.
Lewis, Alfred & Jon, Loebbaka. Managing future and emergent strategy decay in the commercial aerospace industry . Business Strategy Series 9.4 (2008): 147
Raman, Hari & Andrew, Barnes. Finite Element Modeling, Simulation, Tools, and Capabilities at Superform . Journal of Materials Engineering and Performance 19.4 (2010): 495.
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