Introduction

The supply chain is an essential component of any company that sells goods. When it comes to building planes, it`s no different. The supply network of a corporation is critical to its success. Airbus is the world`s largest aircraft maker, alongside Boeing (Pham, Darabi and Wilmot 2016). As a result of increased industry demand, Airbus aims to increase production. The question is whether the provider will be able to keep up. In this paper, the supply chain and policies of Airbus will be examined.

Discussion: Supply Chain Strategy

In a constantly changing global market, every company has been on a cost-cutting crusade to build the most cost-effective supply chain processes. Airbus chose other companies to design, develop, and manufacture the plane`s primary subsystems. The goal was to improve the previous model`s performance by adding greater passenger capacity and incorporating modern technologies such as a Rolls-Royce engine. In order to minimize the time it takes to develop new aircraft, Airbus devised a new supply chain strategy that raised the complexity of outsourced components (Pham, Darabi and Wilmot 2016). The Supply Chain was meant to keep manufacturing and assembly prices low by moving a major portion of the development financial risk to Airbus suppliers. Airbus outsourced forty per cent of work packages for the A380 and A330/40 projects. For the course of its activities, the company operated as a traditional producer of assembled components sourced from thousands of vendors. This is part of the Airbus Power 8 rationalization plan, which involves outsourcing job packages to suppliers, particularly those who have become risk-sharing partners.

SWOT Analysis

Airbus` SWOT analysis is a framework for analyzing issues that affect the aerospace sector as a whole, as well as how they affect Airbus. The SWOT analysis depicts Airbus` internal and external qualities, such as strengths, weaknesses, opportunities, and threats.

Strengths

Portfolio: Airbus offers a diverse range of products. Its main business is manufacturing and designing military and civil aerospace goods, as well as offering manufacturing and design services. In the global airline business, the corporation has a substantial aircraft footprint. Production and assembly lines, on the other hand, are found in Germany, the United Kingdom, France, Hamburg, Spain, the United States, Canada, and China (Sarangi and Ajinkya 2017).

Market Share: Airbus is among the biggest aircraft manufacturers globally. The company serves America, Europe, the Middle East, Africa, Asia, and other parts of the globe. Airbus, and Boeing both aircraft manufacturing enterprises, are said to have a ninety-nine per cent market share in the aviation sector (Witt 2016)