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Case study
Publication date: 26 February 2016

Jennifer Brown and Craig Garthwaite

At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their…

Abstract

At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected.

Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders.

In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network.

The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.

Audio format (.mp3 file) available with purchase of PDF. Contact cases@kellogg.northwestern.edu for access.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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Case study
Publication date: 20 August 2018

Jamie Jones and Peter Bryant

In the summer of 2014, a large energy company was poised to begin expanding its unconventional natural gas operations in northeastern British Columbia in the hopes of capitalizing…

Abstract

In the summer of 2014, a large energy company was poised to begin expanding its unconventional natural gas operations in northeastern British Columbia in the hopes of capitalizing on the Canadian province's determination to build a liquid natural gas industry. The company had secured mineral rights from the province but had not simultaneously pursued surface rights from a First Nation community that historically had used the land. When a seismic exploration team appeared on the tribe's traditional territory without consulting it, as was customary (and in some cases legally required), the company unwittingly ignited a firestorm of protest from both First Nation and non First Nation local citizens. Recognizing the importance of social acceptance both to operations and profitability, the company sent senior vice president Maria Paquet to participate in fireside discussions with tribal, regional government, and environmental leaders in the hopes of finding some common ground. Could these leaders arrive at sufficient trust and agreement to allow the company to move forward with its plans? Or would the company face gridlock, community blocking, or even financial peril? In a small-group role-playing exercise, students will step into the shoes of each of these stakeholders as they try to forge a path forward that is acceptable to all.

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