...REV: SEPTEMBER 18, 2007 ERICH ALEXANDER VOIGT JORDAN MITCHELL Airbus vs. Boeing (A) Should Airbus go ahead and develop its own version of a super jumbo (the A3XX)? Should Boeing develop a larger version of the 747? What would Boeing and Airbus gain by teaming up? What could they lose? The answers to these questions would determine the future of both companies for many years to come. The Commercial Airline Industry Do The global aviation industry was sized at approximately $100 billion as of 1992. The single largest segment was the manufacture and sale of large commercial aircraft, which totaled $38.5 billion in 1991.1 The sale of large commercial aircraft was expected to grow to $40 billion by the end of 1992. The worldwide commercial aircraft fleet was made up of nearly 8,000 passenger and 1,200 cargo planes spread out over 450 airlines and operators. Large commercial aircraft were defined as airplanes with 100 or more seats. Large aircraft made up 90% of the fleet, while smaller airplanes accounted for the remaining 10%.2 The VLCT was defined as a plane over 400 seats or with the ____________________________________________________________ ____________________________________________________ Professor Ramon Casadesus-Masanell, Erich Alexander Voigt (Tiggeman Associates), and Research Associate Jordan Mitchell prepared this case. This case was developed from published sources. HBS cases are developed solely as the basis for class discussion. Cases are...
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...Working Paper Number: 02-061 Working Paper Date: February 2002 “Airbus vs. Boeing in Super Jumbos: A Case of Failed Preemption” Benjamin Esty (Harvard Business School) Pankaj Ghemawat (Harvard Business School This paper can be downloaded without charge from the Social Science Research Network electronic library at: http://ssrn.com/abstract_id=302452 Airbus vs. Boeing in Superjumbos: A Case of Failed Preemption* August 3, 2001 Rev. February 14, 2002 Benjamin C. Esty Morgan 381 Harvard Business School Boston, MA 02163 Tel: (617) 495-6159 e-mail: besty@hbs.edu Pankaj Ghemawat Morgan 227 Harvard Business School Boston, MA 02163 Tel: (617) 495-6270 e-mail: pghemawat@hbs.edu *Acknowledgements: Ramon Casadessus-Masanell, Bruno Cassiman, Richard Caves, Ken Corts, Tarun Khanna, Julio Rotemberg, Vicente Salas Fumas, Xavier Vives and seminar/workshop participants at Boston University, Copenhagen Business School, Harvard Business School, INSEAD, New York University and Universitat Autonoma de Barcelona provided helpful comments. So did senior executives at both Airbus (Adam Brown, John Leahy) and Boeing (Tim Meskill, Randy Baseler, and Jim Jessup), although their comments do not constitute an endorsement of the material in either the teaching case or this paper. We also gratefully acknowledge help from Ed Greenslet, Don Schenk, and The Airline Monitor in obtaining data and insights about the commercial jet aircraft industry, Mike Kane’s assistance in preparing the original teaching...
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...Airbus vs. Boeing in Superjumbos: Credibility and Preemption by Benjamin C. Esty and Pankaj Ghemawat Current Draft: August 3, 2001 Benjamin C. Esty Morgan 381 Harvard Business School Boston, MA 02163 Tel: (617) 495-6159 e-mail: besty@hbs.edu Pankaj Ghemawat Morgan 227 Harvard Business School Boston, MA 02163 Tel: (617) 495-6270 e-mail: pghemawat@hbs.edu Acknowledgements: We would like to thank Ed Greenslet and The Airline Monitor for providing data on and insights about the commercial jet aircraft industry, Mike Kane for assistance with the original teaching case, and the Division of Research at the Harvard Business School for supporting this research. Airbus vs. Boeing in Superjumbos: Credibility and Preemption Abstract In December 2000, Airbus formally committed to spend $12 billion to develop and launch a 555-seat superjumbo plane known as the A380. Prior to and after Airbus’ commitment, Boeing started and canceled several initiatives aimed at developing a “stretch jumbo” with capacity in between its existing jumbo (the 747) and Airbus’ planned superjumbo. This paper provides a strategic (game-theoretic) interpretation of why Airbus, rather than Boeing, committed to the superjumbo, and why Boeing’s efforts to introduce a stretch jumbo have, at least to date, been unsuccessful. Specifically, game theory suggests that the incumbent, Boeing, would earn higher operating profits if it could somehow deter the entrant, Airbus, from developing a superjumbo, but...
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...World Trade Organization CASE ANALYSIS Table of Contents 1. Review the articles and explain what the core of the disputes is.................. 1 2. Find and present at least three other disputes, which are at the agenda of the Dispute Settlement Committee of WTO. ........................................................ 2 a) Russian Federation- Measures on the importation of live pigs, pork and other pig products from the European Union .................................................. 3 b) Brazil- Certain measures concerning taxation and charges ...................... 4 c) Anti-dumping duties on light commercial vehicles (LCV) from Germany and Italy ............................................................................................................... 5 3. Explain the term “dumping prices”. ................................................................. 6 4. Which other commodities are object of protectionist measures? ................ 7 References ............................................................................................................. 9 1. Review the articles and explain what the core of the disputes is. The four investigated articles deal with the influence of governments on particular industries and how they try to strengthen and on the same time protect the competitiveness of domestic players. Three of the four articles highlight China’s protectionism on its market for cultural products. Protectionism can be defined as certain government...
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...The Case Study of Eva Airways Core Competencies in Airline Industry | December 252012 | The idea of "core competences" is one of the most important business ideas currently shaping our world. This is one of the key ideas that lies behind the current wave of outsourcing, as businesses concentrate their efforts on things they do well and outsource as much as they can of everything else. Eva Airways core competencies covers excellent flight safety record, advanced flight equipment to enhance flight safety, fleet complete, network-intensive services, caring and meticulous service that includes their current and future customer service programs, human capital investment for providing excellent customer service, and professional management. With these excellent customer-oriented services, Eva Air proves that they are already world-class air carrier and robustly have an edge to compete in international market with the low-cost airline carrier, prestige airline carrier, and even the government-controlled carrier. We also believed that Eva Air’s customer-oriented services (core competencies) could sustain the growing or future demands in airline industry and can survive the toughness of the competition. The Case Study of Eva Airways Core Competencies in Airline Industry I. INTRODUCTION The airline industry exists in an intensely competitive market. Over the years, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore...
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... 2006-07 Contents At a glance ••• 1 Chairman’s message ••• 2 Key figures ••• 4 A contributor to the economy ••• 8 Interview with Jean-Cyril Spinetta and Leo van Wijk ••• 10 Passenger activity ••• 14 SkyTeam ••• 26 Cargo activity ••• 28 Maintenance activity ••• 34 Corporate governance ••• 42 Being a shareholder ••• 50 Sustainable development ••• 58 Consolidated financial statements ••• 64 Glossary ••• 69 Additional information on the Air France-KLM group can be found in the 2006-07 reference document on the website, www.airfranceklm-finance.com, or on request. 2006-07 At a glance Global leader 240 105 3 73.5 1.4 900 destinations in businesses million tons of cargo transported 1 countries million passengers carried aircraft maintained Profitable growth 23.1 billion euros of revenues billion euros of operating income employees 1.2 103,000 2 Dear Shareholder, This financial year draws to a close the first phase of the merger between Air France and KLM which has resulted in significant value creation for the Group and for our shareholders. Within a context characterized by a high oil price, our profitable growth strategy has enabled us, in three years, to multiply our operating income by a factor of 3.4. This first phase has been applauded by the media, appreciated by analysts and valued by the markets. Furthermore, Air France-KLM’s...
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...1.0 Introduction Air New Zealand is the dominant flagship airline in New Zealand. At present the airline more or less controls the majority of the New Zealand domestic market. The airline also operates on several global international routes. Since Ralph Norris was appointed as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. After the business transformation program, the structural changes in the marketplace made a new direction indispensable and Air New Zealand is turning to align its route and service standards to customer needs from inflexible service offerings. Meanwhile, Air New Zealand is developing from a full service airline into the direction of a value-based airline which involves lower fares and more customers. Reduced revenues (per customer) should be off- set by lower operating costs mainly achieved by simplification of product bundles and services. (Airline to put profit on menu.UBS Warburg Conference, 2003, p.11 ) The following table gives an overview of the key aspects of Air New Zealand is facing after the new strategic direction launched, as we can seen as SWOT analysis. Figure 1 SWOT analysis Strengths-Well established system and strong operational network Marketing programs.-One of the earliest members of the Star Alliance, it flying 25 domestic and 23 international destinations and covering 16 countries approached at different cities in Asia, Pacific, North America and Europe...
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...Emirates Airline: Connecting the Unconnected Introduction Late afternoon was fading to dusk as Tim Clark, President of Emirates Airline, gazed out at the large crowds mingling outside at the 2013 Dubai Airshow. Front and center at the event was the official program launch of the Boeing 777X, a massive new hit thanks to Emirates’ record order of 150 new planes. Valued at $76 billion at list prices, this was the largest airplane deal ever inked. Letting his thoughts drift, he noted, he imagined with pride these planes joining the collection of widebodied Emirates planes assembled on the tarmac of Dubai International Airport, ready to ferry passengers from Europe, Asia, Africa, the Americas and the Gulf to their respective destinations. This is the face of the global economy, he thought to himself, as he marveled at his company’s success. Emirates was indeed a global success story. In just twenty-five years the airline had grown to become the third-largest airline globally by capacity and the largest by number of international passengers.1 (See Exhibit 1). Twenty-three new routes were added in 2012 and 2013,2 and capacity growth was expected to increase by 18.4% in 2013 thanks to deliveries of new aircraft, including the new A380s deployed to over 20 destinations.3 Emirates anticipated that its meteoric growth would continue and was building its fleet accordingly: with 41 A380s integrated into its fleet thus far, another 99 were scheduled for delivery in the coming years (See Exhibit...
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...History (including Tasman Empire Airways Limited/Air New Zealand 1939-1978, New Zealand National Airways Corporation 1947-1978, and Air New Zealand 1978-on) issued February 2006 1939 During the months before the New Zealand, United Kingdom and Australian Governments reached agreement on the constitution of the new company, the Union Steam Ship Company accepted initial responsibility for the three Short S.30 Empire class flying boats which Union Airways had ordered for the Tasman service, and in August 1939, the incorporation of Tasman Empire Airways Limited (TEAL) - later to become Air New Zealand - was sufficiently advanced for ZK-AMA "Aotearoa" to fly to New Zealand. 1940 April 26: TEAL registered in Wellington as a limited liability company. Original holdings were: New Zealand Government 20%, Union Airways 19%, BOAC 38% and Qantas 23%. Chairman of Directors - Colonel N S Falla; Deputy Chairman - A E Rudder. The board reported to the Tasman Air Commission, which itself reported to the New Zealand, Australian and British Governments. April 30: Inaugural Auckland-Sydney flight ZK-AMA "Aotearoa", then weekly. First service commanded by Captain J W Burgess with 10 passengers. May 2: First return flight. August: TEAL increased the frequency of its Auckland-Sydney service to three times a fortnight. Connection was made at Auckland with Pan American Airways' San Francisco-Auckland flying-boat service. 1941 March 31: TEAL's first...
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...ETIHAD AIRWAYS Assignment I Contents INTRODUCTION 2 BACKGROUND 3 ETIHAD’S CORE VALUES 4 COMMITMENT 4 VISION AND MISSION 5 HISTORY 6 LOYALTY PROGRAM 6 FINANCIAL PERFORMANCE 9 FINANCIAL POSITION 9 FINANCING ACTIVITIES 11 EXTERNAL ENVIRONMENT 11 GENERAL ENVIRONMENT 12 EXTERNAL ENVIRONMENT ANALYSIS 41 INDUSTRY ENVIRONMENT ANALYSIS 44 1. Porter's 5 forces model 44 COMPETITOR ANALYSIS 65 INTERNAL ENVIRONMENT 68 COMPETITIVE ADVANTAGE 90 VALUE CHAIN ANALYSIS 92 IMPORTANT ENVIRONMENTS THAT ETIHAD NEEDS TO BE AWARE OF: 108 ARE THE VISIONS AND MISSIONS CLEAR AND MEASURABLE? 110 REFERENCES 111 INTRODUCTION Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change (Dess, Gregory G., G.T. Lumpkin and Marilyn L. Taylor, 2005). Our group decided to work upon Etihad Airways, the flag carrier airline for United Arab Emirates. The name ‘Etihad’ is derived from an Arabic word which means ‘union’. In addition to its main activity of passenger transportation, Etihad controls Etihad cargo and holidays. Aside from that, they have stakes in many other airlines...
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...ANNUAL REPORT 2014 1. HIGHLIGHTS The financial and operating highlights for Air Canada for the periods indicated are as follows. FOURTH QUARTER CANADIAN DOLLARS IN MILLIONS, EXCEPT WHERE INDICATED 2014 2013 FULL YEAR $ Change 2014 2013 $ Change FINANCIAL PERFORMANCE METRICS Operating revenues 3,104 2,894 210 13,272 12,382 890 106 135 (29) 815 619 196 (206) (141) (65) (710) (617) (93) (100) (6) (94) 105 10 95 67 3 64 531 340 191 3.4% 1.8% 1.6 pp 6.1% 4.3% 1.8 pp 3.4% 4.7% (1.3) pp 6.1% 5.0% 1.1 pp 319 277 42 1,671 1,433 238 319 359 (40) 1,671 1,515 156 Operating income Non-operating expense (1) Net income (loss) Adjusted net income (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3)(4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3)(4) EBITDAR margin % (4) 10.3% 9.6% 0.7 pp 12.6% 11.6% 1.0 pp 10.3% 12.4% (2.1) pp 12.6% 12.2% 0.4 pp Unrestricted liquidity (5) 2,685 2,364 321 2,685 2,364 321 Free cash flow (6) (366) (276) (90) (560) (231) (329) Adjusted net debt (7) 5,132 4,351 781 5,132 4,351 781 Return on invested capital (“ROIC”)...
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...07-079 Innovation through Global Collaboration: A New Source of Competitive Advantage Alan MacCormack* Theodore Forbath** Peter Brooks ** Patrick Kalaher** *Harvard Business School, Boston, MA **Wipro Technologies, Product Strategy and Architecture Practice, Boston, MA Copyright © 2007 by Alan MacCormack, Theodore Forbath, Peter Brooks, and Patrick Kalaher. Note: This is one of two papers reporting the results from this research. The other is “From Outsourcing to Global Collaboration: New Ways to Build Competitiveness,” HBS Working Paper 07-080. Working papers are distributed in draft form for purposes of comment and discussion. It may not be reproduced without permission of the copyright holders. Copies are available from the authors. Innovation through Global Collaboration: A New Source of Competitive Advantage Date: August 14th 2007 Alan MacCormack* Harvard Business School, Soldiers Field, Boston, MA 02163 Theodore Forbath, Peter Brooks, Patrick Kalaher Wipro Technologies 75 Federal Street, Boston, MA 02110 * Corresponding Author Abstract Many recent studies highlight the need to rethink the way we manage innovation. Traditional approaches, based on the assumption that the creation and pursuit of new ideas is best accomplished by a centralized and collocated R&D team, are rapidly becoming outdated. Instead, innovations are increasingly brought to the market by networks of firms, selected for their unique capabilities, and operating in a coordinated...
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...ROBERT F. HARTLEY • Cindy Claycomb 12th Edition T W E L F T H E D I T I O N MARKETING MISTAKES AND SUCCESSES Robert F. Hartley Late of Cleveland State University Cindy Claycomb Wichita State University VICE PRESIDENT & EXECUTIVE PUBLISHER SENIOR EDITOR PROJECT EDITOR EDITORIAL ASSISTANT ASSOCIATE DIRECTOR OF MARKETING MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR PRODUCT DESIGNER SENIOR PRODUCTION MANAGER ASSOCIATE PRODUCTION MANAGER PRODUCTION EDITOR COVER DESIGNER George Hoffman Franny Kelly Brian Baker Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Allison Morris Janis Soo Joel Balbin Eugenia Lee Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical...
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...destinations in southeast Asia, middle east, east Asia, Oceania and north America. On March 1941, Philippine airlines (PAL) began to soar in the Philippine sky with one noble mission: to serve as a factor in building a better nation. With this in mind, notwithstanding the threats of World War II, pal took off and became Asia’s first airline. Since then, with its every takeoff and touchdown, pal carries with itself the making of a world-class legacy. With almost 70 years of service, PAL did not fail in becoming one of the world’s most respected airlines with its young and modern fleet of aircraft and destinations that cover 31 foreign cities and 29 domestic points. Its excellent service and world-class accommodation help pal win the hearts of travelers worldwide and pierce those of its competitors. Today, PAL has led the trend in the aviation industry. Aside from its young and modern fleet of aircraft and modern facilities, it has also one of the most extensive computer systems and radio communications networks in the Philippines. Also, PAL has been cited with...
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...------------------------------------------------- 497 Study Guide Module I: Industry & Competitive Analysis “Porter’s Five Forces”: 1. What is strategy (fundamental question in strategic management) a. How to achieve superior financial performance 2. Why industry Analysis? b. Industry analysis helps a firm understand the underlying economic forces that contribute to or detract from its profitability, and subsequently suggests a means for firm to find an optimal position for itself. i. Industry is a group of firms that produce products or services that meet the same needs of customers in a competitive market. ii. Industry Analysis uses economic principles to understand how profit is distributed among participants in a market (including both direct competitors and other parties such as suppliers) 3. Porters Five Forces – are a checklist of things that can affect value capture and creation c. Rivalry Among Existing firms iii. Few firms : Betrand – fight in price Cournot – fight on quantity Collusion – Firms choose price cooperatively iv. Industry concentration: % of total industry sales accounted by the 4 largest firms d. Threat of New Entrants v. Switching cost, capital requirements, access to distribution, product differentiation vi. Puts a cap on profit potential of an industry e. Power of Buyers vii. Price Sensitivity f. Power of Suppliers ...
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