TY  - JOUR
AB  - Boeing and Airbus are contemplating entry into very-large-aircraft (VLA) markets. Both firms are convinced the market cannot support two players due to the extremely high R&D costs and the limited (and highly uncertain) state of demand. The key strategic issue is the uncertainty surrounding Boeing's development cost: to what extent would Boeing's experience with the 747 help it reduce the R&D cost of a new VLA prototype? The main point is that Boeing's strategic moves signal its private information, and that this eliminates any first-mover advantage Boeing might have had in this market.To introduce some of the strategic issues arising in natural monopoly industries in which the winner takes all, and focus on the issues of credible preemption and signaling.
VL  - 
IS  - 
SN  - 2474-6568
DO  - 10.1108/case.kellogg.2016.000045
UR  - https://doi.org/10.1108/case.kellogg.2016.000045
AU  - Al-Najjar Nabil
AU  - Aoyagi Ichiro
AU  - Goldstein Guy
AU  - Korupp Ted
AU  - Liu Bin
AU  - Singh Suchet
PY  - 2017
Y1  - 2017/01/01
TI  - Boeing and Airbus: Competitive Strategy in the Very-Large-Aircraft Market
T2  - Kellogg School of Management Cases
PB  - Kellogg School of Management
SP  - 1
EP  - 16
Y2  - 2024/04/24
ER  -