A Brief Note On The Civilian Aerospace Industry Essay

The purpose of the report is to assist Aircraft Solutions (AS) in indentifying the most significant Information Technology (IT) security vulnerabilities. AS products and services are at the forefront of the industry and the protection of such is very important as they are an industry leader. The vulnerabilities that will be discussed are the firewall configuration, virtualization of their

With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces.

is the air resistance on any given object that is moving in the presence of air. In the

Suppliers generally have a moderate to high bargaining power within the industry due to the limited number of suppliers which forces aviation companies to choose from the number available and accordingly to accept their prices. In fact, fuel is the second highest cost for aviation companies. There are highly depended on supplier’s prices and the availability which indicates on a relatively high bargaining power of suppliers. In addition, there are high switching costs which are strongly in favor of the suppliers and means that the company experiences an increase in operating costs when switching to another supplier as flying another type of aircraft leads to additional costs (maintenance, training etc.).Aircrafts are vulnerable to delays due to the location of gate locations which leads to a decrease in utilization and therefore to an increase in costs.

Aerospace Designs: This segment manufactures and provides services for mid-size, large cabin and ultra-long range business aircraft.

Aircraft Solutions designs and fabricates component products and services for companies in the electronics, commercial, defense, and aerospace industry. The purpose of Aircraft Solutions is to provide customer success through machined products and related services. most of its equipment is automated to increase production while reducing costs. The company 's workforce has a large skill base: design engineers, programmers, machinists, and assembly personnel to work its highly-automated production systems with great skills.

There are only 3 main competitors in the commercial jet engine-making industry which operates as an oligopoly. Historically, all of these companies have competed with each other for jet engine contracts which led to intense price wars. To avert ruinous price wars, these companies typically enter into exclusive supplier contracts with aircraft manufacturers. In such arrangements, the engine maker becomes the sole provider of jet engines for a specific aircraft model.

Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant

The following analysis discusses the suppliers, buyers, industry competition, threats to entry, and substitutes that exist within the large commercial aircraft industry. Additionally, the analysis identifies the pressure that each of these groups applies on the industry and estimates the impact this pressure has on potential industry profits. Each group is identified using a high, medium, or low-pressure classification. A high-pressure classification indicates the group reduces industry profit potential and vice versa.

This is a case about three different companies dedicated to the manufacturing of aircrafts. Those three major companies are: Boeing, Airbus Industry and McDonnell Douglas; each of one was struggling to produce enough aircraft to satisfy a seemingly unquenchable need for passenger and freight transport around the world, developed in this form many kinds of aircrafts in different models and styles.

Aircraft industry has only small suppliers while the customers are all over the world. As above mentioned the industry requires large complex cooperate alliances in its hierarchy, only few countries having high tech industry basis are able to

As the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security system, Boeing puts a lot of efforts and innovations in its products and services. These include commercial and military aircraft, satellites, weapons, electronic information and communication systems, and performance-based logistics and training.

The main barrier to entry in the aircraft manufacturing market is the sheer size of the industry and the amount of capital investment required to make the aircraft. Moreover, the concerns of the aviation industry are not similar

For example, Boeing and Airbus supply most commercial aircraft. The concentration within the suppliers segment of the industry makes it very difficult for competitors to exercise leverage over another supplier and obtain lower prices. The power of the supplier is one key in prohibiting the ability of competitors to earn higher profits.

Airbus’s main competitor, Boeing Company was founded in 1916, it has been the world 's leading manufacturer of large commercial aircrafts for several decades (Tong & Tong, 2003). However, in 2005 Airbus delivered more planes than Boeing, due to the 911 terrorist attack in 2001, and suffered a strike by workers in the manufacturing site last autumn. Between 2005 and 2004, Airbus deliveries increased by 18% to 378 aircraft, said Chief Executive Gustav Humbert. It was a new record for Airbus, it was a better outcome than the European aircraft maker 's perdition (370 deliveries). On the other hand, Boeing, which has lagged behind Airbus in orders since 2001 and deliveries since 2003, only delivered 290 planes in 2005 (Michaels, 2006).