Boeing and Airbus Competition

The fierce rivalry that has existed between aircraft manufacturing producers, Boeing and Airbus, is not likely to come to and end any time soon. The two companies have dominated the aircraft manufacturing business over the last two decades and with market opportunities opening up in developing countries, the competition is likely to get interesting. Aircraft Industry The structure of the aircraft industry can be referred to as duopoly. This is where the market is dominated by two or few firms. Even though there are other aircraft producing companies, they have a small effect on the global aircraft market.

Boeing, a United States based aircraft producer dominated the production of aircrafts for a long time, and it was not until the end of 1970, that it began to face competition from Airbus, an European Union consortium company. During this period there arose issues where the United States accused the European Union of providing Airbus with subsidies that created unfair competition between the companies (Gerald, 1998). This resulted in legal court cases between the United States and European Union which found its way to the World Trade Organization.

As a result, in 1992 they came up with an agreement which defined the type of assistance that could be provided to the companies. However over the years there have been cases where both countries have accused each other of not honoring that agreement. The financial difficulties being experienced by several countries, have caused many financial institutions to cut down on credit advanced to businesses and as a result small aircraft manufacturers have been forced out of the market thereby allowing both Boeing and Airbus, which are heavily funded to continue to dominate the aircraft market.
Boeing and Airbus have been competing to reduce their operating costs where they relocate the production of certain aircraft parts to countries that can produce quality parts, but which incur relatively low production costs. Competition Both companies have invested and are competing in terms of coming up with new technology inventions that enables them to retain or attract new customers. They have been coming up with new models of aircraft that are bigger in size, fuel efficient, engine superiority as well as being fast.
When one company introduces a new aircraft model the other one does the same by announcing a new productions. There have been attempts by countries such as Russia and China to eliminate the dominance of Boeing and Airbus by developing their own aircraft productions that would create competition but have failed to do so. This is due to the fact that, production of large civil aircrafts requires not only a large pool of finances, but also a great deal of politics if one is to survive in the international market. Conclusion
The rivalry between these two giants is not likely to end soon with each company attempting to dominate the aircraft business and will probably result in a much fierce competition that is likely to renew the arguments they had on subsidies. In addition pride is at stake. The United States takes pride in the performance of Boeing, while the European Union will do everything in its power to make Airbus successful. Therefore competition is likely to increase in the coming years. Reference Gerald, D. (1998). The Aircraft Business. New York: McGraw-Hill.


Boeing Capital Corporation

Boeing is the principal producer of jetliners. They also handle even military gadgets and vehicles. Boeing also blueprints and produces electronic and security systems. They also serve different clients with missiles, and satellites. Another available service and product of the company includes launching vehicles and aids in providing advanced information and communication systems. The company also provides numerous military and commercial airline maintenance services. Boeing has customers in more than 90 countries around the world, and this makes them number 1, exporter in terms of sales.

Boeing Capital Corporation also assumes the role of a financial assistant. They assemble structures and/or offer financing to smoothen the progress of the sale and deliverance of Boeing commercial and military aircraft, satellites and launch vehicles. Since Boeing is a corporation that holds industrialization for defense systems and paraphernalia the company has the legal responsibility to adhere to legal standards for products, as any other company does. This has the highest legal responsibility on this because most of the time, people lives rely in the hands of their equipments.

The company must also able to understand that they have the legal responsibility to bring quality to their users. These legal responsibilities also expand to adhering to laws in their particular local sites. Being the one that operates the Space Shuttle and International Space Station, of NASA, one of the major ethical responsibilities of the company should include the confidentiality of their information. Boeing should also be able to take into account the respect they should give each client. And as part of Boeing’s commitment to this is that they give seminars that rekindle the ethical responsibilities among Boeing employees.
The business world has already advanced towards giving emphasis on the ethical side of business. They do understand that gaining the trust and confidence of the people boost the industry as well as their profits. Social responsibilities include what are the company’s duties to the society. This includes their environmental responsibility to everyone in the planet. One of the responsibilities of Boeing includes the proper disposal of their waste materials. Boeing also uses electronic devices and gadgets, so it should follow that they have electronic wastes as well, then, they should be responsible for trashing them properly.
Boeing has the responsibility to keep the environment clean, especially on the local regions they are conducting their business and on their manufacturing sites. Social responsibilities also coincide with legal responsibilities of the company. In the UK they implement what is known as Waste Electrical and Electronic Equipment or WEEE. These wastes are composed of a wide variety of products from computer mechanism, to refrigerators, and batteries. IT and office equipment comprises only 12% of the whole electrical and electronic equipment recycled in the UK.
However, the IT apparatus are not the only ones in trouble – the remaining 88% of WEEE is made up of other electronic and electrical equipment, similar to the calculator you have. It is predictable that the UK economy will have to pay between ? 200 and ? 500 million per annum. Most leading companies have environmental and corporate social accountability policies in place. There are some companies who are already making changes in their strategies to accommodate these directives and avoid future fines or sometimes even lawsuits against the companies.
There are sanctions coming from, not only on the localities they are in, but also international sanctions. There are three factors that influence Boeing’s strategic, tactical, operational, and contingency planning. These are the political factors, the ethical, legal and social responsibilities that are implemented internationally. Most businesses are impacted by these factors, and as Boeing is directly linking with different governments for their defense mechanisms, they are directly influenced by political decisions by different nations on different aspects, for instance on health, or environment or even on local rules and regulations.
For example, the ethical and legal responsibilities of the company may be compromised if they distribute information unknowingly to different states, in case of disputes. There are many times as well when Boeing has to adjust their operational planning due to existing international agreements. Even their strategic and tactical planning will be under different negotiation depending on existing cultures in their place of business, say for example they are situated in an anti-missile nation, then they may not be allowed to sell or even to store missile parts in that area.
As a whole, management planning of Boeing should also depend, not only on existing international laws, but also laws, customs and beliefs on the locality they would like to extend their business. Works Cited http://www. boeing. com/companyoffices/aboutus/brief. html, http://www. boeing. com/biz_unit. html, http://www. boeing. com/companyoffices/aboutus/ Official website of Boeing, downloaded December 20, 2007. http://www. icaew. com/index. cfm? route=150521, WEEE in Business have Explicit Legal Responsibility, downloaded December 20, 2007.