SWOT Analysis of Boeing and Airbus

Rabi Uddin Nasir

20110280
Date Submitted: 3rd October 3, 2016

Boeing

Strengths

Weaknesses

1) Increased reliance on
1) A diverse portfolio with
government contracts
multiple category of
2)
Decreased operating
products
2) Second largest defense income
3) Dependent on 787contractor in the world
3) Extensive lobbying doneDreamliners success
providing key political
contacts

Opportunities

Threats

1) Increased defense 1) Stiff competition for

defense contracts
budgets globally
2)
Government regulations
2) Growing demand for
commercial planes

Boeing is the largest aerospace company in the world, with its sales compromising
across divisions such as commercial jets, military jets and defense systems. Whilst
defense contracts may be uncertain but with a strong base in Washington they are
unlike to dry up. Boeing has a vast market reach with more than three fourths of the
worlds fleets belonging to them.

Airbus

Weaknesses

Strengths

1) Deal with Iran pending

US House of
representatives
approval
2) Mainly dependent on
sale of commercial jets
3) Sales of A380 less than
expected

1) Large share of
commercial jets
2) Customer support
service with regard to
spare parts
3) Presence over a number
of European countries
4) Record number of
orders for A380neo

Opportunities
1)
1) Increased sales of
2)
commercial jets
throughout the world
2) Possible breakthrough
in research regarding
alternative fuels

Threats
Government regulations
Increased competition
in small commercial jet
market

Lesser sales of A380 has negatively affected the revenue expected. Added to that
the deal with Iran is still under a halt due to amendments by the House of
Representatives. However research into fuel consumption and alternative fuel
provides a glimmer of hope with notable reduced fuel consumption in A380 Neo.