Companies which operate outside of monopolistic environments are faced with the decision whether to compete or collaborate with other companies within their industry. Strict competition can make the successful companies stronger as they develop technologies and procedures that edge out the competition. Collaboration can make the collaborative partners stronger when considered against the industry as a whole, although the individual partners may be individually weaker as a result of the collaboration.
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 missiles. The company was named by NASA as the primary contractor for the space station program in August 1993. Major defense and space programs include the Airborne Warning and Control System (AWAC) aircraft and the Inertial Upper Stage. The company also makes military and commercial helicopters, including the Comanche Light Helicopter, currently in development. Government sales accounted for 20 percent of revenues in 1992, while foreign sales accounted for 58 percent of 1992 sales. European sales a...