Boeing Vs Airbus Case

5. In the event the WTO rules against Airbus and tells it to stop accepting subsidies and soft loans, how should Airbus management respond? What new approaches can management pursue to maintain Airbus's lead in the global commercial aircraft industry?

I. cost leadership strategies

II. differentiation strategies

III. Technology and Innovation strategies

IV. Low price strategies

cost leadership strategies

Cost leadership strategy aims at producing products keeping the customer in view and manufacturing products at low cost per unit. So that, customer could afford that particular product. Airbus could position itself as offering a low cost product as a standard price. Costs are reduced at every element of the value chain. Airbus can exploit the benefits of a bigger margin than the competitors. Airbus also can produces services at low price coupled with a brand and marketing skills to use premium pricing policy.

It could offer a services that was different from that offered by rivals. This allows companies to make prices less sensitive and focus on value that generates a comparatively higher price and a better margin.

Differentiation Strategies

The differentiation strategy suggests that products and services should be unique with different and innovative designs and those products should be targeted towards the customer who are intending to buy low priced products and services.

Differentiation strategy seeks to provide products or services completely different from those of its competitors by adding features valued by consumers. The main objective of using this is to either maintain the market share or increase market share relative to its competitors. A clear example of this is aircraft manufacturer Airbus's wider fuselages, cockpits designed for use in more than one aircraft and electrical rather than mechanical flight controls.

Technology and Innovation Strategies

Production innovation takes a main place in the innovation strategy important for the survival of the existent in the cruel aerospace environment. many surveys show the importance of Research and Development for innovation. Indeed the surveys proved that investment in this function of the business would affect profit marginal in a positive way.

To safeguard this technology leadership