Question: Based on text bellow 1 . Compare the two companies according to their competence profile 2 . identity which company has a sustainable competitive advantage,

Based on text bellow

1. Compare the two companies according to their competence profile

2. identity which company has a sustainable competitive advantage, competitive advantage, competitive disadvantage or if they have competitive parity?

Explain your answer.

The industry for large commercial aircraft (LCA) is a duopoly composed of Boeing Co. and Airbus Industries. These two manufacturing giants have emerged in an unsteady industry whose fortune is based upon strategic timing and luck. Once considered a small player, Airbus swiftly emerged as an industry giant by focusing on the market's needs, a standard product line, efficient production methods, and successful marketing ploys. Airbus was able to establish a significant market share and a brand name by making airplanes that addressed the needs of the market. Airlines had been crying for cost-efficient midsized airplanes, and Airbus answered by building the A-320. The commonality that the A-320 had with other Airbus airplanes was attractive to airlines because of its potential to reduce pilot and attendant training costs and improve airplane turnaround time. Airbus has kept tighter control over the knowledge it shares with suppliers. In fact, in late 2005, Airbus tightened control over tier-one suppliers, directing them to outsource only minimal amounts of work to Asian countries. Boeings key technical expertisesuch as wing technology and new lightweight materials, such as compositesare considered its core competencies. Boeings mission statement signifies that one core competency lies in detailed customer knowledge and focus.28 Customers can choose between buying new or used planes and licensing them or purchasing them entirely. Boeing also sought strategic partnerships globally in an effort to reduce costs and perhaps generate sales. By outsourcing to countries such as China and India, Boeing entered an offset agreement to obtain aircraft sales in return for manufacturing work. This arrangement allowed Boeing to gain more substantial entry into two of the largest and fastest-growing airplane markets (China and India). Boeings competitive position can be attributed to the record-breaking number of orders and a onethird increase in production capacity.

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