Why Boeing lost its Japanese Market

Because of the political reasons, Japanese airplane market is fully dominated by American companies until recently, European company Air Bus announced a $9.5 billion order from Japan Airlines for 31 A350 wide-body jets and overtook his major competitor—Boeing in Japanese market.

So why Boeing lost its market? One reason might be that Boing had trouble with its most popular plane—the 787 models as they cannot solve the publicized battery problem and have to delay the deliver date. In this case, Boeing lost their points of parity for a plane—a plane needs to work safely. And as a result they lost their market share in Japan.

This deal is a milestone for the Airbus’s effect to explore Japan’s market, because the other airplane company also  plan to add Airbus’s plane to their list. In order to avoid more lost in Japanese as well as the world market, Boeing needs to achieve the points of parity first, and then establish new points of different in their plane, for example the new 777 model, which will have a giant wing made of carbon composites and the lighter 787 model which can cut the fuel cost by 20%. Only in this way can Boeing stop losing their market share.

 

http://www.nytimes.com/2013/10/08/business/international/jal-orders-9-5-billion-worth-of-airbus-jets.html?ref=international&_r=0

Leave a Reply

Your email address will not be published. Required fields are marked *