Airbus

Student Name Professor Name Course Date Industry and Competitive Environmental Analysis of the Airline Industry  Below is a systematic analysis of the airline industry and competitive environmental analysis framework for the rise and demise of Airbus 380 based on Porter’s five forces. This research will help understand the competitive landscape and how industry pressures acted upon Airbus as it launched the A380 through its lifecycle. Firstly, based on the intensity of rivalry, and since the aircraft manufacturing industry is enormous on capital and labor demands, new entrants are a minimal threat. Considering the vast investments into Research and Development (R&D) and manufacturing infrastructure, there are many barriers to exiting (Dorfler and Baumann 12). The international rivalry between well-known enterprises such as Boeing and more recent participants from countries like China strengthens the conflict. Secondly, due to the threat of new entrants/ barriers to entry and exit, the aviation sector also requires vast capital for manufacturing, research, and development. The other significant hurdle is certification and approval by aviation authorities. Since the market is very opportunistic, there are many exit barriers, making it hard for businesses to gain any profit when they decide to leave the industry. Thirdly, the bargaining power of suppliers in the aviation industry is enormous. Suppliers have considerable purchase power and are most advantageous, especially with large airliners such as the A380. A few vendors dominate every phase within the complex supply chain, producing specialized aircraft manufacturing parts (Kumar and Nanda 191). There are improved negotiations in cost, quality, and timely delivery with the suppliers. The effectiveness or ineffectiveness of the A380 depended largely on Airbus’ supply chain networks and conne...