Airbus Vs. Boeing

Airbus vs. Boeing

Differential Advantage Exercise Questions

IV.

A. Where does Boeing have differential advantage, delivering on which benefits to which target?

Boeing had the opportunity to deliver benefits of differential advantage to the Indian Government, but failed to utilize them. With the size, wealth, and global strength of Boeing, they could have been a large influence on the Indian Government. Boeing could have done several things to strengthen the relationship; they could have provided a Ganges clean-up fund, partnered with the U.S. government to create contracts for Indian national defense providing aircraft and weapons, and could create technology exchange and outsourcing opportunities.

While Boeing does have a differential advantage by being united under one government, rather than several, ideas must be implemented and the impact on government relations must be considered at all times. Success in presenting benefits to both groups will provide the greatest chance of success.

Boeing clearly has the differential advantage with Indian Airlines. The product that Boeing can provide is superior to that of Airbus. Boeing can provide Indian Airlines superior safety, low seat cost, low fuel cost and decrease dependency on foreign oil. Boeing can also provide faster delivery, better maintenance options, and superior design quality.

B. Is it meaningful? (Does it satisfy a highly ranked benefit)

Boeing's differential advantage is meaningful if it were only in regards to Indian Airlines. While it does satisfy the needs of Indian Airlines, it does not satisfy the highly ranked benefit for the Indian Government. While Indian Airlines is making the purchase and operating a business, the Indian Government has the final say in the deal. If the government finds a benefit it dealing with a particular company, they can override the contract negotiations. In conclusion, in the current state of Boeing, the areas where they are