Airbus vs. Boeing (C): Steps Toward Dispute Resolution SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Airbus vs. Boeing (C): Steps Toward Dispute Resolution
Presents partial resolution of problem. Cites points still to be resolved in trade dispute between U.S. aircraft manufacturers and Airbus Industrie. To be used as a handout after discussion of the case.
Swot Analysis of "Airbus vs. Boeing (C): Steps Toward Dispute Resolution" written by Malcolm S. Salter, Wendy Coleman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Airbus Dispute facing as an external strategic factors. Some of the topics covered in Airbus vs. Boeing (C): Steps Toward Dispute Resolution case study are - Strategic Management Strategies, Conflict, International business, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Airbus vs. Boeing (C): Steps Toward Dispute Resolution casestudy better are - – increasing commodity prices, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, geopolitical disruptions,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of Airbus vs. Boeing (C): Steps Toward Dispute Resolution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Airbus vs. Boeing (C): Steps Toward Dispute Resolution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Airbus Dispute, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Airbus Dispute operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Airbus vs. Boeing (C): Steps Toward Dispute Resolution can be done for the following purposes –
1. Strategic planning using facts provided in Airbus vs. Boeing (C): Steps Toward Dispute Resolution case study
2. Improving business portfolio management of Airbus Dispute
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Airbus Dispute
Strengths Airbus vs. Boeing (C): Steps Toward Dispute Resolution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Airbus Dispute in Airbus vs. Boeing (C): Steps Toward Dispute Resolution Harvard Business Review case study are -
Diverse revenue streams
– Airbus Dispute is present in almost all the verticals within the industry. This has provided firm in Airbus vs. Boeing (C): Steps Toward Dispute Resolution case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Airbus Dispute in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Airbus Dispute is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Airbus Dispute is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Malcolm S. Salter, Wendy Coleman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Airbus Dispute has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Airbus Dispute has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Airbus Dispute has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Airbus Dispute to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Airbus Dispute has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Airbus vs. Boeing (C): Steps Toward Dispute Resolution Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Airbus Dispute
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Airbus Dispute does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Airbus Dispute digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Airbus Dispute has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Airbus Dispute is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Airbus Dispute is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Airbus vs. Boeing (C): Steps Toward Dispute Resolution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Airbus Dispute in the sector have low bargaining power. Airbus vs. Boeing (C): Steps Toward Dispute Resolution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Airbus Dispute to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Airbus Dispute is one of the leading recruiters in the industry. Managers in the Airbus vs. Boeing (C): Steps Toward Dispute Resolution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Airbus vs. Boeing (C): Steps Toward Dispute Resolution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Airbus vs. Boeing (C): Steps Toward Dispute Resolution are -
No frontier risks strategy
– After analyzing the HBR case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Airbus Dispute 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Airbus Dispute needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution, it seems that the employees of Airbus Dispute don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, Malcolm S. Salter, Wendy Coleman suggests that, Airbus Dispute is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Airbus Dispute is dominated by functional specialists. It is not different from other players in the Global Business segment. Airbus Dispute needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Airbus Dispute to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Airbus Dispute is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Airbus vs. Boeing (C): Steps Toward Dispute Resolution can leverage the sales team experience to cultivate customer relationships as Airbus Dispute is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Airbus vs. Boeing (C): Steps Toward Dispute Resolution HBR case study mentions - Airbus Dispute takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Airbus Dispute has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Airbus Dispute has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Airbus vs. Boeing (C): Steps Toward Dispute Resolution should strive to include more intangible value offerings along with its core products and services.
Opportunities Airbus vs. Boeing (C): Steps Toward Dispute Resolution | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Airbus Dispute to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Low interest rates
– Even though inflation is raising its head in most developed economies, Airbus Dispute can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Manufacturing automation
– Airbus Dispute can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Airbus Dispute can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Airbus Dispute to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Airbus Dispute can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Airbus Dispute can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Airbus Dispute can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Airbus vs. Boeing (C): Steps Toward Dispute Resolution, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Airbus Dispute can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Airbus Dispute to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Airbus Dispute to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Airbus Dispute can use these opportunities to build new business models that can help the communities that Airbus Dispute operates in. Secondly it can use opportunities from government spending in Global Business sector.
Building a culture of innovation
– managers at Airbus Dispute can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Airbus Dispute in the consumer business. Now Airbus Dispute can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Airbus Dispute can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Airbus vs. Boeing (C): Steps Toward Dispute Resolution suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Airbus vs. Boeing (C): Steps Toward Dispute Resolution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution are -
Environmental challenges
– Airbus Dispute needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Airbus Dispute can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Airbus Dispute can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Airbus Dispute with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Airbus Dispute demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution, Airbus Dispute may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Airbus Dispute needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Airbus Dispute is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Airbus Dispute.
High dependence on third party suppliers
– Airbus Dispute high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Airbus Dispute business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Airbus Dispute can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Airbus vs. Boeing (C): Steps Toward Dispute Resolution Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Airbus vs. Boeing (C): Steps Toward Dispute Resolution is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Airbus Dispute needs to make to build a sustainable competitive advantage.
