Question

Microeconomics

B. With reference to the theories and with the use of wider research, you must complete a company report, which analyses and evaluates ONE of the 3 following companies:

1) Airbus
2) Samsung

3) Tesla

You must choose ONE of the companies and follow the below structure for your report:

1. Introduction: write a brief company profile and introduce the company’s mission and vision, strategic goals, basic financial performance in the past 3 years.

2. Pick one of the company’s key products and write about the type of market structure it competes in. List the closest substitutes of this product and also find out their market share. Find out why this product is successful or unsuccessful.

3. Draw a conclusion about the success of the company and how you see it competing in the future.

You should use relevant theories in your answer, but you should also refer to data and other studies where relevant. This report should be completed by you individually,

• Wordcount: 1500 words (approximately for ‘Part B’ 750 words)

Answer 1

AIRBUS:

Airbus is a pioneer and the market leader in aerospace industry witha worldwide presence. Leading in designing, manufacturing and delivering its products, services and solutions to customers to a large scale. They seek to make the world a safe, better connected and a prosperous world.

Airbus is registered and headquartered in the Netherlands; its shares are traded in France, Spain and Germany. It deals with commercial aircrafts, helicopter, defence, security & space, etc.

Principles: Airbus supports effective, accountable and inclusive institutions at all levels. We aim to maintain the highest standards of compliance and transparency in our business practices around the world, aligning the company's growth and technological innovation with the needs and expectations of society.

Their priorities (Sustainability): 1. Environment

2.Health and safety

3. Human rights

4.Corporate citizenship

5.Reporting and data performance

Designing the future with innovation: the driving forces of airbus is innovation they believe in cutting edge technology and excellence to drive worldwide progress.

Highlights: With 3 billion euro self financed R&D, 25% reduction in CO2 emission and 37000 patents.

Shareholder:Airbus is a shareholder of MBDA, a missile systems provider and a impactful partner in the Eurofighter consortium.

Ventures: Owns 50% stakes in ATR, the turboprop aircraft maker, and AirianeGroup, manufacturer of the Ariane 6 launcher.

• Airlines industry has an oligopoly market structure.where few firms have vast majority of market shares.
• Product - Commercial airplanes
• Substitute is - Boeing commercial planes

Market share of airbus and boeing in passenger aircraft industry is-

Airbus - 6%, boeing - 40% (as per forbes data)

Airbus sucess reason - Spacious, comfortable with less white noise aircrafts Over took boeing by 863 airplanes deliveries for year 2019 in comparison to its rival Boeing, which did 345 deliveries. where boieng failed because of its faulty assumptions and delivery cancellations.

(ABOVE I HAVE PROVIDED YOU POINTS TO ELABORATE ON,YOU CAN EXPAND ON EACH POINT, AS MUCH DATA IS AVAILABLE ON THE INTERNET.)