Boeing and Airbus are considering entry into highly-large aircraft (VLA) markets. Both companies are convinced that the market can not support two players due to the extremely high R & D costs and the limited (and very uncertain) state of demand. The strategic question is the uncertainty about the development costs Boeing: Boeing To what extent would help reduce the experience of the 747 R & D costs for a new VLA prototype? The main point is that Boeing’s strategic moves his private signal informat … Read more »

Boeing and Airbus are considering entry into highly-large aircraft (VLA) markets. Both companies are convinced that the market can not support two players due to the extremely high R & D costs and the limited (and very uncertain) state of demand. The strategic question is the uncertainty about the development costs Boeing: Boeing To what extent would help reduce the experience of the 747 R & D costs for a new VLA prototype? The main point is that Boeing moved its strategic private data signal, and that therefore no first-mover advantage Boeing could have had in this market.
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from
Nabil Al-Najjar,
Ichiro Aoyagi,
Guy Goldstein,
Ted Korupp,
Bin Liu,
Suchet Singh
Source: Kellogg School of Management
16 pages.
Release Date: 1 January 2006. Prod #: KEL022-PDF-ENG
Boeing and Airbus: Competitive Strategy in the Very-Large-aircraft market HBR case solution