Airlines Need Better Business Models to Compete in a Crowded Market: Research Paper

Introduction

Recently, the airline industry has faced increased competition in the business environment as a result of companies that provide similar services to the prevalent clients. As such, the airline sector relies upon unique business models to ascertain that customers receive cost-effective services. Therefore, managers focus on meeting customer expectations within a certain timeframe to ensure that the airline industry becomes successful in the end. Practitioners such as engineers play an important role by ensuring that they invest in technological advancement with the aim of producing cost-effective jets. Thus, the major driver regarding project development in the aircraft industry entails the utilization of creativity and innovation, as well as advanced technological techniques.

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Airbus is classified among the leading aircraft manufacturers globally, whereby the company acquires positive outcomes as a result of commercial know-how, customer focus, and manufacturing efficiency and technological leadership. Currently, Airbus captures approximately half of the commercial airline orders globally. The modern product line is comprised of aircraft that range from 107 to 520 seats. On the other hand, Airbus has delivered more than 6,600 airplanes since it began its services in 1974. The profitability of Airbus fleets is acquired as a result of dedication to enhancing the profitability of the current fleets. This paper examines the manner in which Airbus strives to ascertain that it becomes an efficient enterprise by ensuring that air transport continues to become a reliable means of transport.

Methods

Researchers used various methods to acquire information whereby qualitative techniques. For example, ethnography, interviews, questionnaires, as well as grounded theory techniques were enhanced to ensure that there were no inconveniences faced shortly. As such, ethnography involves a situation whereby individuals are required to join the targeted clients to ensure that managers become conversant with diverse cultural backgrounds, motivations, and challenges faced by clients. Therefore, the leaders are required to come up with the necessary solution to lure potential customers from the business environment without facing any challenges. The company should ascertain that customer expectations are met within the required timeframe without facing any delay. Consultation aids in effective decision making and accessing alternative choices.

On the other hand, a SWOT analysis was conducted to examine a company whereby the internal analysis entails weaknesses and internal threats, whereas external strengths are composed of opportunities and threats. As such, the industry's stronghold lies upon the brand name that is recognized internationally. (Monnoyer and Zuliani 260). On the other hand, Airbus is comprised of strong internal managerial mechanisms that assist in regards to overall growth and development. The managers should ensure that the available resources become utilized efficiently to improve quality offered to prevalent clients in the business environment. On the other hand, clients have a negative perspective linked to new entrants in the market. Thus, such an attitude may become a weakness faced by the company in the end.

A company's opportunities depend on internal and external assessment protocols in regard to organizations' operations. Consequently, a corporation is required to utilize the available opportunities to ascertain that Airbus attains growth and development as a result of effective competition. In this case, opportunities linked to Airbus include diversification of current activities to achieve the necessary opportunities. The leaders should analyze the competitors in the business environment. For example, Boeing is a direct competitor to Airbus, considering that the two companies offer similar services to the clients. The strategies used by any rival company should be evaluated to come up with the required counteraction.

Results

The results obtained from the investigation revealed that there are enterprise environmental factors that affect the success of Airbus, which include external and internal factors. As such, the external factors include demand for airplanes with more space, political influence, government regulations, infrastructure abilities, culture, and weather conditions. Contrarily, the internal factors include cultural aspects, abilities of the internal team, management abilities and support, the structure of the Airbus, working styles, and project management. (Jones 13). Therefore, the Airbus team is required to acquire technical skills to ascertain that they are competent to manufacture airplanes in regard to the required features. Enterprise environmental factors play an important role in certain projects that lead to growth and development.

The buyers are often permitted to customize the prevalent amenities which pose a risk to Airbus. There are several facilities that require customization, including private rooms, privacy doors, and a playroom for young individuals. Besides, operational costs incurred increase due to the customized facilities required by several clients in the business environment. Face to face communication is important because individuals acquire direct feedback from their clients. Besides, managers become capable of solving issues that lead to setbacks that hinder the company from meeting customer expectations. Numerous customers lack the interest to purchase customized facilities because more time is required to deliver quality services to the clients. In case an aircraft is not liked by customers, customization leads to various challenges since it is hard to reverse the products after manufacturing.

Discussion

The success of a business depends on the available buyers because they assist a company in acquiring a competitive advantage in the business environment. The practitioners in the plane manufacturing business, such as engineers, should ensure that they provide quality products and services to lure potential clients to Airbus. For instance, the company should make fuel-efficient planes to avoid facing any inconveniences related to high operational costs. Marketing campaigns assist individuals in society to become conversant with the kind of services and products offered by a particular company. Customers are likely to accept services offered by Airbus, considering that the workers become productive to offer quality services.

Recently, there are several companies that compete with Airbus for the available market share, such as American Lockheed, McDonnell Douglas, and Boeing. Airbus is the largest making company globally. Nonetheless, the number of new entrants in the market relies upon the prevalent opening obstructions. Therefore, the higher the opening obstructions, the lesser the number of contestants in the available business environment. Hindrances to new entrants comprise of legitimate limitations, limited entrance to administering mediums, and increased capital costs of entry. An organization's success depends on the quality of decisions made by the managers. Leaders should ensure that they acquire relevant facts and data to ascertain that their endeavors become successful.

There are several airlines that develop strategies that contribute to negative outcomes. Eventually, such companies opt to merge with existing corporations to attain a profit. Practitioners consider the Airline industry a tricky business since entry is easy, but quitting is a challenge. The major challenge faced in the industry is the increased cost of fuel. Thus, the services offered to the clients become expensive in the end. Besides, recently, several airlines have lost customers due to insecurity linked to terrorist attacks. Nonetheless, the airplanes that have recently adopted new technological advancement protocols consume fuel in an efficient manner. According to Haas, Aulbur, and Thakar (185), creativity and innovation have recently enabled certain airplanes to charge lower prices and offer quality services to the clients, unlike the old model airplanes that do not offer such facilities. Also, jumbo planes are economical because they carry many passengers. Larger planes enjoy economies of scale because they charge lower charges than the smaller planes in the industry.

Airbus takes orders from diverse nations, individuals, and companies to make different airplane models. Therefore, the customers acquire the freedom to choose the level of technology advancement required to attain the set goals. Nonetheless, the clients' specifications should match the company's overall policies. Airbus Company is required to be flexible such that it easily adapts to changes linked to advancement in technology without facing any challenges. The managers should ascertain that the workers acquire learning sessions to improve their skills at the workplace. Leaders should offer necessary financial assistance and learning opportunities to all the laborers without any discrimination to promote productivity.

There have been several plane crashes that require the management to become keen on the passengers' safety. In case of an accident, a company loses many clients who prefer other reliable modes of transport. The human resource department should ensure that it hires competent personnel at the workplace to provide quality services to the customers. Airbus Company intends to launch a new project known as A380 with the intention of acquiring positive outcomes by customization of the prevalent facilities. There are several factors that cause increase in chances of failure linked to the project such as improper development of schedule for the project, existence of monopoly, lack of efficient training to the managers, overrun of project costs, increased programming costs, and liability for paying penalties in case Airbus fails to deliver the project within the set schedule.

The leaders should ensure that the company does not face challenges linked by the embezzlement of funds through the employment of competent and authentic personnel. Airbus group is divided into three groups, including the Airbus Defense and Space, the Airbus helicopters, and the Airbus. In 2016 Airbus ownership was distributed between Spain (4.2%), France (11.1%), Germany (11.09%), whereas other nations acquired approximately 73.6% of the company. Therefore, the major production sites are located in Germany, Spain, France, and the United Kingdom. Boeing is the main competitor of Airbus since it offers similar services to clients globally. As such, Airbus and Boeing are the leading forces encountered in the aircraft market. Boeing previously held 46% of the market, contrary to Airbus, which held 54% of the overall business market.

The declining popularity of the A380 aircraft poses as a weakness for Airbus that requires to be solved to avoid facing any challenges soon. A380 aircraft are linked to problems with vital programs and high operational costs. Furthermore, Airbus lacks the ability to lower the prevalent operational costs and costs of production; thus, hindering the ability to compete in the business market. On the other hand, there are numerous individuals that prefer air transport rather than sea or road transport, such as professionals and middle-class clients. Such individuals play an important role in the growth and development of a nation's economic status as a result of the gradual increase in the gross domestic product. Besides, Airbus creates employment opportunities for many people, which assists in the elimination of social evils in the community, such as crime.

Recently, the airline industry is undergoing several changes. As a result of this, Airbus Company is affected by such trends; therefore, the leaders should ensure that they embrace efficienc...