Capital-intensive industry that requires complex high technology and huge economies of scale, large global civil aviation industry allows only a few profitable players and dominated television company Boeing ("Boeing") and Airbus SAS ("Airbus"). Despite outsourcing was evident from 1970 to 1990, Boeing and Airbus have become increasingly dependent on foreign suppliers, especially in emerging markets such as China. Industrial offset agreement allows the two giants to shrink their manufacturing processes, and more actual work of design and construction, the Chinese suppliers in exchange for guaranteed sales of finished Chinese aircraft carrier. This case is a brief introduction to the global large civil aircraft industry. It can be used to teach courses with an emphasis on economics, business management, production, and operational management. "Hide
by Dean Xu, Isabel Chan Source: University of Hong Kong, 23 pages. Publication Date: 09 Sep 2008. Prod. #: HKU788-PDF-ENG