Boeing and Airbus have been dominated most of the market share of the aircraft manufacturing
industry where there are only two dominant competitors in the market. For a long time, no
other competitors were entering into manufacturing industry to threaten either Boeing or
Airbus because of many barriers of entry and technical challenges. However, both two dominant
players, Boeing and Airbus recently showed
Boeing ‘s corporate strategy is focusing on dominant market leader positions in both the
military and civil sectors. This strategy leads mixed portfolio with strong diversification. Similar
as Boeing, Airbus, in the business strategy, Airbus pursues the strategy of diversification as the
best cost provider in every market segment for large commercial jetliners. Compared to Boeing,
Airbus set a higher percentage of the portfolio with civil sector than defense sector but try to
increase defense sectors in the non-US market. The functional area strategy within Boeing
commercial aircraft is embossed by a tripartition with a special focus on the jumbo-size B787
project
Both Airbus and Boeing have been faced each other with neck and neck races in the aircraft
industry and duel positioned as a market leader. Airbus showed more dominance from Europe
and Asia region, but Boing dominated the American market. Boeing could not make any good
excuse of mega-jumbo size commercial aircraft, A380, but resulted in much success with its
B787 in the mid-size and long-range segment, where Airbus was a little behind chasing the
A585. However, Airbus became more competitive and provide more deliveries and services in
the commercial segment when Boeing reduced their focus on commercial business to provide
high demands of military aircraft from an increase of US government contracts. US government
has been continuously increased government contracts and budgets on military aircraft
development and manufacturing in the past decade after twin tower terror attack and
continuous of battle from the middle east. Boeing’s jumbo size aircraft and long-range
specification become an important factor to select number one from any commercial passenger
carrier customers, but Airbus’s recent strategy focusing on freighters where in expect to get a
strong market share against Boeing. Airbus currently has more freighters to extent more
support to the mid-sized aircraft, which have greater demand in the freighters industry. With
this strategy, Airbus is more specialized in fuel-efficient jets and long-range twin-aisle models to
go ahead of Boeing. As Airbus gained more market share through differentiated business
dominant strategy, Boeing needs to reconsider their business dominant business strategy to
gain more market share from global customers. When Boeing struggle with the quality issue of
the max 747 model, which was its main focused model as jumbo and long-range, Airbus hold
chasing jumbo-sized aircraft but changed its strategy to increase mid-size aircraft to monopolize
the freighter industry. Also, as Boeing increased much demand of military aircraft with US
government, Airbus slightly increased their portfolio of defense segment to get deference
contracts from the non-US defense market. Thus, there was massive growth of Airbus over
Boeing, but this situation will not continue for a long period of time because Boeing still has
many comparative advantages to improve its position. As both companies have been investing
huge in advanced technology in order to provide better and advanced service to their
customers, Boeing still go head of most of aircraft-related technology. Boeing where less effect
