【正文】 rospace firms pete for large orders from airlines to try to recover their high costs Buyer Power ?Analysis=Weak ?No threat of substitute products due to the uniqueness of speed and the ability of aircrafts to travel over water. ?Exception: for short distances over land, aircrafts may pete against automobiles and trains. Threat of Substitutes ?Analysis= High ?Two firms peting in the Aircraft industry, Boeing and Airbus. ?The two firms are equally balanced and have little differentiation in their products. Rivalry ?The High Intensity of Rivalry is due: ? Two firms controlling the Aerospace industry ? Similarity of products produced by the two firms ? Firms adopting the same strategies ? Regulations and policies enforced by the WTO. ? Firms in the industry need to find ways to differentiate between their products and continue to innovate. ?Strategies: ? Run Healthy Core businesses ? Leverage strengths into new products and services ? Open new Frontiers ?PEST ? Technological opportunities are most opportunities to Boeing. ? Political factors represent the major threats to Boeing in the form of the WTO regulations and laws ?Aircraft Industry and Porter Five Forces ?Low: ? Supplier Power ? Threat of Substitutes ?High: ? Intensity of Rivalry ? Barriers to Entry ? Buyers Power ?Key Force: Intensity of Rivalry. ?Airbus and Boeing control the Aircraft industry, Embraer as a potential emerging petitor. “If you don’t take care of your customers….someone else will” Military amp。 Space World Aircraft manufacturing industry Commercial Aircraft Passenger Aircraft Cargo Aircraft Large Civil Aircraft( LCA) Small to Medium sized Aircrafts ? Boeing ? Airbus ? Bombardier ? Embraer ? Leader in the mercial jet manufacturing for decades ? Merged with McDonnell Douglas in 1996 ? Second largest defense contractor in 2020 ? Leader in the satellite making (space industry) business as of 2020 ? Established in December of 1970 ? Boeing’s only petitor in mercial jet manufacturing ? Controlled 55% of the large passenger aircraft market in 2020 ? World’s largest maker of small planes in Canada ? Make jets that seat between 2590 passengers ? Control 36% of the global market for business and regional jets ? Company founded in 1969 in Brazil ? 11,000 employees ? Historically their planes seat between 3050 passengers ? Currently developing new jetliner family in the 70110 seat category Boeing Airbus Embraer Bombardier Entity Public EADS Public Public Products Commercial Jets Commercial Jets Commercial Jets Regional jets Revenue Gross Profit 330M 310M Employees 160,500 52,500 17,149 28,900 Global Presence 70 countries 150 Countries 92 countries 35 countries Market Rank 1 2 3 4 ? Boeing ? Supersonic Jet ? Airbus ? SuperJumbo Jet ? Bombardier ? Focus on Smaller Jets ? Embraer ? Focusing on the 70110 seat market By Product Differentiation ?Aircraft Seat capacity ?Aircraft Speed By Outsourcing ?Subcontracting production of aircraft ponents or assemblies to gain petitive advantage By the use of technology ?The use of advanced technology to seek performance advantages. ? Products Differentiation Boeing adopts a differentiation strategy , Faster aircrafts in the form of the supersonic 787 Dreamliner series that pete against Airbus bigger airplane the A380 jumbo Aircraft. ? By Outsourcing 70% of