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Problem

The European aerospace consortium Airbus is a strong competitor to Boeing and is climbing toward its long-stated goal of winning 50 percent of the over-100-seat airline market. What criteria would a customer like UPS or British Airways consider in choosing aircraft? What are the critical factors that shape competitive advantage in the aircraft market?

Step-by-step solution

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Step 1/3

One firm can attain a competitive advantage in various forms ranging from production to customer service. Competitive advantages allow the firms to provide products and services to the customer better than their rivals can provide.

Step 2/3

As a customer like U and BA, they should consider the following criteria or factors while selecting aircraft. First of all, they should ensure which aircraft actually meet their demand. Not every aircraft fits all kinds of demand. Thus, selecting the list of aircraft that meets their demand is necessary. Secondly, capacity should be checked. The capacity to deliver the goods or consignments of each aircraft should be considered. The capabilities of the payload range also play a vital role in selecting aircraft. Thirdly, the performance of the aircraft. It includes fuel consumption, cost, quality of service, and support services. From these elements, cost plays a critical role. These are the three criteria that are considered while selecting appropriate aircraft.

Step 3/3

In the case of competitive advantage, the aircraft industry or market mainly attain competitive advantage in two ways. One is the cost advantage. The airline's firms to lower the cost of passenger or customer services (like U and BA), they try to lower the operational cost. They will improve fuel efficiency, and other equipment installed in the flights. Secondly, the technological uniqueness. The airline firms normally introduce new technological devices and services that improve customer services and provide easy accessibility of service. It also includes the capabilities of the aircraft to meet customer demand.