Boeing and Airbus are considering entry into the very large aircraft (VLA) markets. Both companies are convinced that the market can not support two players because of the extremely high R & D costs and the limited (and highly uncertain) state of demand. The key strategic issue is the uncertainty of the development cost Boeing: to what extent will experience a Boeing 747 to help him to reduce R & D costs of a new prototype VLA? The main thing that Boeing strategic moves signal their private information, and it eliminates any first mover advantage Boeing, may have been in this market. "Hide
by Nabil Al-Najjar, Ichiro Aoyagi Guy Goldstein, Ted Korupp, Bin Liu, Suchet Singh Source: Kellogg School Management 16 pages. Publication Date: January 1, 2006. Prod. #: KEL022-PDF-ENG
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