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Question 1 What reasons did Boeing give for cancelling its development of the super jumbo Why were these open to another interpretation The reasons for Boeing cancelling its development of their super-jumbo Boeing carried out a study which revealed that there was insufficient customer demand This study also stated that only 480 super jumbos would be sold over 20 years Therefore Boeing could not justify 7 billion US dollar investment Boeings reasons for cancelling the super jumbo project were open to other interpretation because Boeing possibly did not have the production capabilities Boeing may have been pre-occupied with the acquisition of McDonnell-Douglas Boeing may be using this as a strategy to put off competitors such as Airbus from entering into this new market segment and therefore maintaining their dominance in all the current segments Question 2 What strategic weaknesses did Airbus face in terms of its customer strategy Airbus customer strategy weaknesses Airbus cannot meet the customers needs in all segments of the airline industry Airbus cannot therefore provide the customer with what they need a range of aircrafts for all of their flying routes If the airlines the customer has a full family of aircraft from one manufacturer they benefit from 1Saving money in spare parts 2Saving money on training staff 3Lowered servicing costs Question 3 Is the Airbus strategy driven by customers Or rather by a sense of rivalry with Boeing From the case study it would seem that Airbus strategy is driven by both its customers the airlines and by their competitive rivalry with Boeing Evidence Airbus strategy is customer driven They tried to form an alliance with Boeing to provide the customer with a larger aircraft This would suggest that they are more interested in the customers needs than competing directly with Boeing Additionally they wish to carry forward this idea for a new generation of aircraft by themselves to satisfy
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