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https://blogs.ubc.ca/matthieudaniel/2013/10/08/airbus-expansion-to-japan/

Recently, Japan Airline, one of the biggest airline company in Asia, turned its airplane supplier into Airbus instead of Boeing. This action made Airbus’s market share increase more rapidly. On the contrary, Boeing lost one of its more important partner.

Japan Airline made this decision due to the delay of Boeing to offer its new 787 Dreamliner. Boeing considered that its comparative advantages and strategy would keep the company’s  leading position for a long time. Thus, Boeing chose to develop new partners and upgrade its technology. However, the company neglected the potential of losing existed partnership.

It’s like short-run performance versus long-run performance. Boeing maybe get short-run profits from its decision. But in a long-run, it is very possible that the company’s profitability will be lowered because of the quit of Boeing.

Pic: http://topnews.ae/images/Boeing_Airbus.jpg

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