Collaboration or Competition for Boeing & Airbus Companies which operate outside of m

The airplane manufacturing industry is one international industry where competitive and collaborative strategies have been pursued, particularly since World War II. This industry is characterized by high-technology, high-costs and high-risk, and is international in scope. Companies which compete in this industry are often regulated by government, or, in some cases, controlled directly by government interests. American companies dominated the industry immediately after World War II, but have lost their dominant position, although they remain strong influences in the market. This research examines one American Company, Boeing, and considers whether it is appropriate for Boeing to enter into a collaborative or competitive stance with another international competitor, Airbus.

As of 1992, Boeing was the world's leading manufacturer of commercial jets. In addition to its commercial sector, Boeing also produces military aircraft and missile

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Airbus benefited from protectionist policies which the governments of the various companies participating in the project backed. By agreeing to purchase Airbus products, these governments provided a built-in market for the product, and also helped decrease market share for companies such as Boeing. In this way, the governments were able to help protect the domestic niche that Airbus required to establish a reputation in the highly competitive aircraft market (Bartlett and Ghoshal, 1992, p. 291). One of the concerns that collaborative efforts within the aerospace industry raises is that of technology transfer. Because companies which provide commercial aircraft also provide military aircraft in most cases, there is concern among governments that secret or strategic information might be lost among collaborative partners. In some cases, governments seek to control the type of technology which can be shared, which can inhibit a strong collaborative effort. In other cases, the government may restrict some businesses from entering into collaborative agreements because of the potential for technology loss. Successful collaborative efforts can, by their nature, allay the fears of government that there will be a technology drain as
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Approximate Word count = 1660
Approximate Pages = 7 (250 words per page)

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