SM Assignment Completed - Mr Remie BB309 Strategic...

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Mr. Remie BB309 UCSI University Strategic Management September – October 2014 1.0 Introduction It is important and crucial for an organization to formulate and implement value-creating strategies in order to compete in a competitive market. Therefore, Michael Porter’s influential works on competitive strategy provide the guideline for the organization to formulate the strategies. The works have been published three decades ago, executives and managers have been encouraged to identify ways that their organizations can gain a competitive advantage. As Hansan (2002) stated that a sustained or sustainable, competitive advantage occurs when a firm implements a value-creating strategy of which other companies are unable to duplicate the benefits or find it too costly to imitate. Porter’s three generic strategies. Hanson (2002) helpfully define it as: ‘an integrated and coordinated set of commitments and actions designed to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets’. The firm has an opportunity to formulate and implement a business-level strategy with a specific competitive scope (broad, narrow) and approach to competitive advantage (cost, uniqueness). As the figure 1.1 shows the 4 alternatives known as: cost leadership, differentiation, cost focus, and focused differentiation. On the other hand, Airbus is currently one of the one world’s leading manufacturer of commercial jetliners and military airlifters. The company has evolved during the past 40 years on the vision, innovation and passion of its employees. The present papers present the strategy of Airbus identifying its critical success factors, resources and capabilities and assess the future competition for the org anizations. Page 1 of 12 Figure 1.1
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Mr. Remie BB309 UCSI University Strategic Management September – October 2014 2.0 Question 1 Discuss how Airbus could coordinate their resources and capabilities to achive more competitive advantages in near future. 2.1 Airbus’s current competitive advantage Based on the Airbus case study, it reveals that Airbus was the first wide-bodied twin engine aircraft that leads the manufacturing sector. They offers fuel saving and maintenance advantages over its competitor in its innovative design and technology. According to Leahy, Airbus has strong customer base around the world, which makes its passengers friendly using high technology. As compared with its competitor “Boeing”, Airbus has deliberately improved in terms of its design, technological innovation in the product and financial improvement, which make Airbus more attracting than “Boeing”. Airbus has hit higher achievement over its competitors in the last five years in aspect of orders, design, economy, financially and product differentiation. The advantage that add values to customers is Airbus strategic decisions and supply financing. Airbus offers attractive conditions for the purchase of aircraft to those airlines that cannot fund their purchase. Besides that, Airbus also strives
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