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 transportation and logistics costs, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, geopolitical disruptions, supply chains are disrupted by pandemic ,
challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, 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 -
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.
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.
Innovation driven organization
– Airbus Dispute is one of the most innovative firm in sector. Manager in Airbus vs. Boeing (C): Steps Toward Dispute Resolution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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.
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.
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.
Sustainable margins compare to other players in Global Business industry
– Airbus vs. Boeing (C): Steps Toward Dispute Resolution firm has clearly differentiated products in the market place. This has enabled Airbus Dispute to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Airbus Dispute to invest into research and development (R&D) and innovation.
Ability to lead change in Global Business field
– Airbus Dispute is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Airbus Dispute in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Airbus Dispute has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Airbus Dispute are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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 -
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.
Slow decision making process
– As mentioned earlier in the report, Airbus Dispute has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Airbus Dispute even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Airbus Dispute has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Airbus vs. Boeing (C): Steps Toward Dispute Resolution, in the dynamic environment Airbus Dispute has struggled to respond to the nimble upstart competition. Airbus Dispute has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Capital Spending Reduction
– Even during the low interest decade, Airbus Dispute has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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.
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.
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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Airbus Dispute supply chain. Even after few cautionary changes mentioned in the HBR case study - Airbus vs. Boeing (C): Steps Toward Dispute Resolution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Airbus Dispute vulnerable to further global disruptions in South East Asia.
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.
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 -
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.
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.
Developing new processes and practices
– Airbus Dispute can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Airbus Dispute in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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.
Better consumer reach
– The expansion of the 5G network will help Airbus Dispute to increase its market reach. Airbus Dispute will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
Loyalty marketing
– Airbus Dispute has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Airbus Dispute is facing challenges because of the dominance of functional experts in the organization. Airbus vs. Boeing (C): Steps Toward Dispute Resolution case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Airbus Dispute has opened avenues for new revenue streams for the organization in the industry. This can help Airbus Dispute to build a more holistic ecosystem as suggested in the Airbus vs. Boeing (C): Steps Toward Dispute Resolution case study. Airbus Dispute can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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 -
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.
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 .
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.
Regulatory challenges
– Airbus Dispute needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
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.
Stagnating economy with rate increase
– Airbus Dispute can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
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.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Airbus Dispute in the Global Business sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Airbus Dispute has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Airbus Dispute needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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.