1.     
 

Airbus is an leader in the aerospace
industry. Employed around 136,600 people from 130 countries. It generated
revenues of €64.5 billion. Airbus is a pioneer in manufacturing and designing
aerospace. Airbus offers its customers a wide
range of aircraft, starting from those where 100 passengers are accommodated to
the largest passenger aircraft. In helicopters, Airbus provides innovative
solutions worldwide. The driving force in the Airbus is innovation, which is
why this company is a pioneer in modern technologies. They aimed for a better-connected and safer world. They
sales their products for every part in the world.

Sales per
Regions

2015

2016

Delta

EUR (in
Million)

%

EUR (in
Million)

%

Europe

20,060

31.1%

21,377

32.1%

+6.57%

Asia/Pacific

18,755

29.1%

21,266

31.9%

+13.39%

North America

10,217

15.9%

8,931

13.4%

-12.59%

Middle East

8,612

13.4%

8,464

12.7%

-1.72%

Latin America

4,096

6.4%

4,925

7.4%

+20.24%

Other
Countries

2,710

4.2%

1,618

2.4%

-40.3%

Table
1 – Sales per Regions

2.      Internal environment

3.1. Key
priorities

 

 

An important
priority is to effectively manages growth in commercial plane. Airbus have
higher production goals, focus on delivering to customers’ expectations.

3.2. Strategy/Marketing Mix

·        
Products: Airbus
specializes in the construction of aircraft for various carriers, paying
attention to their requests. It also develops the production of military
aircraft and aircraft in other sizes, for example for private carriers.

 

·        
Price: The prices
they propose to their buyers depend on the requirements of a given consumer and
differ among other things in the equipment of a given aircraft.

 

·        
Promotion: The
company advertises itself in various places, including air shows, for example
at the Dubai Air Show. Then advertises products and negotiates with possible
buyers.

 

·        
Investing in
technology and ecology: Airbus is constantly investing in the latest
technologies that significantly reduce exhaust emissions or reduce the noise
produced by aircraft

 

3.3. International environment

Qualified
people from around 130 countries work for airbus. By 2020, 25% of employees
will be women. Airbus
recognises a strong leadership culture, headed by its CEO Tom Enders.

3.4. Shareholder investments

Airbus is a shareholder of the missile
systems provider MBDA and a major partner in the Eurofighter consortium. It
owns 50% stakes in ATR and more than 50% in CSALP.

3.5. Airbus Group segments

The Airbus Commercial Aircraft segment
develops, production, and sells commercial jet aircrafts.

The Airbus Helicopters segment deals
with manufacture, marketing, and sale of civil and military helicopters.

The Airbus Defence and Space segment create the military aircraft and training
aircraft.

3.      External Environment: PESTEL analysis

 

Political

Company
may be affected by changes in national laws and regulations between the EU
and the UK because of Brexit. Moreover, the results of the US Presidential
election have changed respect to US tax and trade policies, tariffs and
government regulations affecting trade between the US and other countries.

Economic

Postpone or cancel existing orders
for aircraft or decisions by customers. Lack of adequate credit supply from
the market to finance aircraft purchases.
Change in operating costs or weak
levels of passenger demand for air travel.
Astronomical price of  fuel.

Social

Higher technological advancements to reduce
CO2 emission and noise generated.
Encouraging people to travel and become
interested in new technologies.

Technology

Using Carbon fibre in construction
of the aircraft. For example A350 XWB with 50% carbon fibre body.
Introduction of innovative technologies that will be used not only in
aviation for example technologies
related to lower CO2 emissions.

Environmental

Airbus is playing an role in mitigating
climate change. Airbus fully supported two agreements. Firstly, a carbon
dioxide emissions certification standard was established to encourage the
integration of fuel efficient technologies into aircraft design and
development. Secondly, the global carbon offsetting and reduction scheme for
international aviation, known as CORSIA.

Legal

Company can be
affected by Brexit. This can include restrictions on the importing and
exporting of products and services between the UK and EU countries. The free
movement of people and skilled workers can also be limited by new border
controls.

Table
2 – PESTEL analysis

 

 

 

 

4.      Situational analysis: SWOT analysis

Strengths
·        
Leading market position
·        
New technology
·        
Brand reputation
·        
Quality
·        
Fully integrated management
structure all across Europe
 

Weaknesses
·        
High production costs
·        
Delays in production

Opportunities
·        
Growing demand of commercial
aircraft especially in Asia
·        
New project and technology

Threats
·        
Risk cancellations
·        
Competition with Boeing
·        
Brexit
·        
Penalties

Table
3 – SWOT analysis

·        
Strengths

Airbus has a
strong position on the market because it is a well-known and recognizable
company. Is known for good quality and dominance in the aviation market. They
use modern technologies and materials. For example system which allows an
aircraft to quickly and safely on landing while engaging the chosen runway exit
at optimum conditions. It was technology introduced as an option on the
A380, but now it is a standard in the new aircraft.

·        
Weaknesses

High
production and delay costs which generate additional costs are a definite
disadvantage of this company.

·        
Opportunities

They use new
technologies and take part in climate protection programs, which gives them
additional opportunities for development.

·        
Threats

Airbus may
be threatened by Brexit changes because its possible effects are not known yet.
The company may also be punished for a bribe for which it is suspected. This
can disrupt the good brand image.