Case 2 - MGT429 Case 2: Boeing Commercial Aircraft:...

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MGT429 Case 2: Boeing Commercial Aircraft: Comeback? The commercial aircraft-manufacturing industry is a very competitive, consolidated industry. This industry has only two major players, Airbus and Boeing, who constantly compete for majority of the market share. Airbus and Boeing have little-to-no threat of new entrants because of their economies of scale and the customer switching costs that would be incurred by their buyers if choosing another company’s aircraft. The threat of substitutes for aircraft remains low. Bargaining power of suppliers is low due to the fact that there are more suppliers than there are buyers. As well, the bargaining power of buyers is low in this industry. Overall, this industry does not seem like a very attractive industry to enter, but it is very attractive for the two major players due to its high barriers to entry. Boeing’s current competitive advantage stems from their demand projections of U.S. airline companies, better production processes, and more fuel-efficient aircraft. For
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Case 2 - MGT429 Case 2: Boeing Commercial Aircraft:...

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