AVIATION STRATEGY

Aviation Strategy

[Name of the institute]

Table of Contents

Analyze the Arrival of New Aircraft Manufacturers in the Market4

Increased Demands and New Manufacturers4

Technological Advancements6

Aircraft and Airlines Tradition and New Entrants9

Affect on Bargaining Power of Buyers and New Entrants9

End of Monopoly and Ease of Availability10

Analyze the Hypothetical Response of the Existing Aircraft Manufacturers10

Welcoming Healthy Competition11

Launch of New Products13

Embracing New Technology13

Promotional and Relationship Management14

Using the Experience14

Critically Assess the Market Segment Chosen by the New Entrants14

Political Factors16

Economical Factors16

Social Factors17

Technological Factors18

Legal Factors18

Environmental Factors20

Reasons Why This Market Is Chosen20

Expectations to Get the Support of the Government20

Sound Economy21

Strategic Location21

Established Technology Sector21

Strong and Effective Legal Framework22

Give Your Personal Opinion about What Will Happen In the Future with the New Entrants22

Expected Performance of the New Entrants25

Expected Performance of COMAC25

Strategy Designs26

Ample Finances26

Technological Power26

Advantage of Region27

Expected Performance of Sukhoi27

Innovation27

Impact of Soviet Union28

Importance of Consultation and Difficulties in forming Alliances and Joint Ventures28

Expected Performance of Irkut29

Experience29

Strong and Influential Marketing and After Sales Services29

Environmental Friendly30

Aviation Strategy

Analyze the Arrival of New Aircraft Manufacturers in the Market

Aircraft manufacturing industry is an industry in which it is difficult to enter and operate as there are a number of barriers for new entrants. The entry of new players in this industry can affect more than one aspect. These aspects and the analysis of the new manufacturers in the aircraft manufacturing industry is as follows;

Increased Demands and New Manufacturers

The demand for airplanes, aircrafts and Boeings is increasing continuously. The following figure shows the demand for the total airplanes in the year 2009 and projected demand for the years 2019 and 2029.

Figure 1: McGuire, 2011, 4

The following chart shows that the demand and value for the Boeings were at its peak in 2007 and then it began to decrease. But, the demand and value for the airbus is showing an increasing trend.

Chart 1: McGuire, 2011, 4

This increased in demand of the jets, Boeings and airplanes presents an opportunity for the new entrants. The increase in the demand of the airbus and Boeings poses a need that there should be more producers or the capacity of the production of the current manufacturers should be increased. The aircraft manufacturing industry is very concentrated. In this scenario, entry of new players would be fruitful. When new entrants would come in this industry they would provide newly manufactured planes with latest technology that would be appealing for the airline organizations (Odell, 2011, 21). While keeping in mind this increase in demand it can be said that the chances of Sukhoi is more to promote their business as they have introduced new RRJ aircrafts that can meet the needs of today's era. Nowadays, people are travelling a lot and airlines have to rum frequent flights to the same destination. As a result most of the flights do not get full and they have to run the flights with whatever passengers available. In this way, airlines are unable to operate on a more profitable scale. Similarly, COMAC is also working on its manufacturing so, they should also keep into consideration this ...