Beyond shelter: Global competition and airbus' strategic evolution

Abstract

Over a span of twenty years, Airbus has evolved to the point where it has become a serious competitor to Boeing in the global market for commercial aircraft, obtaining a 30 percent market share in 1992. European subsidies totaling over $12 billion have helped Airbus continue launching new aircraft despite losses. Yet, subsidies are not the sole reasonfor Airbus's success with customers. Airbus has been astute in product development, meeting customer needs along dimensions such as range and passenger capacity while matching and sometimes exeeding Boeing in technological features. Airbus' use of subsidies together with competitive product matching represents an interesting example of a firm preparing itself strategically for moving beyond government shelter.

Citation

Sarathy, R. (1994), "Beyond shelter: Global competition and airbus' strategic evolution", Research in Global Strategic Management (Research in Global Strategic Management, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 125-151. https://doi.org/10.1016/S1064-4857(93)04009-Z