A350 XWB: Airbus’ answer toBoeing’s Dreamliner Harvard Case Solution & Analysis

A350 XWB: Airbus’ answer toBoeing’s Dreamliner Case Study Help

Cultural Differences

These kind of differences are most commonly based on language, traditions, educational system and religion. Every country has its own culture on which its living standard can be observed.

Every business culture can also be different from other businesses, according to the customers’ demand. Some of such differences are discussed below:


Language is the most important cultural difference between the countries. Those countries who want to serve international clients need to learn different languages. Every country has its own national language, such as In China people speak and understand Chinese and in the UK British English and this difference gets much complex in the countries where people are multilingual.


Every nation has its own traditions and heritage, which is transferred to them through their ancestors. It makes every nation different from other, such as, Arabs’ tradition is strictly according to the Islam. Their way of living, which includes eating, clothing, events, such as: Ramadan and sports. Therefore, the countries with different traditions have difference in preferences and demand for the commodities.

Educational System

Educational system is another major cultural difference which is of higher importance for businesses. Every country has its own literate and literacy ratio, which varies from country to country. It also varies on the basis of quality of education those countries provide in their schools, colleges and other educational institutes. The quality of education is also dependent on the living standard of people and the social class to which they belong. It is important to consider the education system of the country especially for the businesses who want to provide services across the international borders.


Religion is also considered in cultural differences. Every religion follows certain rules and regulations. Countries usually have higher differences due to different religionsbeing practiced in different countries, such as: Hinduism and Islam. Whenever there is a new invention it is more likely observed that certain group of people would have high demand but on the other hand, certain group of people would not consider it as good. Such as in Muslim countries, alcohol is banned because the religion which they follow forbids alcohol and has declared it as Haram (highly prohibited product) because they believe that it is injurious for the human health.

Global vs. Individual by country product strategy

Businesses normally use product strategy to encounter the markets. Airbus is an aircraft manufactured corporation with low market share. In the aircraft market, Boeing has a monopoly over Airbus. There are certain product strategies which Airbus needs to consider:

Series of Innovations

Airbus can achieve higher market share through a series of innovations in its products. Those innovations which bring a reduction in higher cost of production with the standard quality of aircraft, would be very beneficial for Airbus. Minimum use of fuel with covering large distance can be highly profitable and would help Airbus in earning higher profit margin.


Outsourcing is another better option to make the products more effective and efficient. Some countries, such as: the USA has a monopoly in producing heavy machinery. Most of the time countries do not have good economic condition or they might be scarce in resources, so at such situation; it is better to outsource the equipment from the countries who are self- sufficient for the required machinery or material.

Size, weight & design of the aircraft

Airbus can differentiate through the size and aircraft’s weight. This product strategy can attract many clients. Moreover, it also supports the firm’s ability of generating revenues with the higher number of seats available in the airlines.

Question No. 5-Answer

  1. Boeing

Boeing Airbus is the pioneer of the aircraft industry, enjoying monopoly in the aircraft industry.

But after Airbus’s innovation in aircraft and the launch of its A350 XWB, Boeing faced a strong rivalry from Airbus in terms of technology, which brought down Boeing’s profit margin. In response to this rivalry, Boeing claimed that CFRP and space helped it in manufacturing and reducing the cost of production.

  1. General Motors

General Motor’s marketing strategy is very ambiguous to its customers. General Motors due to its unreliable marketing strategies had lost its market share, in 2005. It combated this loss by investing in portfolios, mutual funds and pension funds. This brought an increase in the borrowing cost of General Motors. In response to these loss incurrences; the company started focusing on its product development and effective as well as an efficient use of material for manufacturing purposes. The advancement in technology also plays a major role in producing cost effective products.........................


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