Product Offering and Differentiation Management Term Paper

PRODUCT OFFERING AND DIFFERENTIATION
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How Airbus and Boeing Develop their 20 year Forecasts.
            Airbus wishes to grow its size by increasing the number of passengers and aircraft fleet by a double the number of its recorded statistics. The company aims to elevate the current 23,000 passengers to 48,000 by 2038 along its traffic by a 4.3% annually. Due to the forecasts, there will be a dire need of 550,000 new pilots and 640,000 new technicians to be employed in the transportation organization (Anker, 2018).  On the other hand, a report given to Reuters by Boeing states that the company has rolled out its 20 year resolutions as being accompanied by a 3% passenger increase, coined by robust air traffic predictions via global geopolitical and economic challenges that could risk the general outlook. Boeing has also written that the 20 year forecast will result in 44,040 new airplanes being made and delivered. However, the attainment of the expectations will cost the company a total of $6.8 trillion, an average global growth of 4.6% which is like that of Airbus.
            Apart from the two disciplines mentioned in the previous paragraph, there are many ways in which Airbus and Boeing make their forecasts. One similarity between the two airline companies is that the main motive of the forecasts is to check their establishment of new destinations in their route networks and increase their profits. The organizations examine and compare past and current facts to deduce the most significant routes in their businesses and find the ones that will offer the most profits in the long-term (Iscold, 2016). The administrations of the aircrafts use numerous programs and tools in their evaluation of the route studies. Specific areas that both Airbus and Boeing look at include passenger demand forecasting, hub connectivity, availability of aircraft in a particular region and other competitors.
 
Factors affecting Supply and Demand for air transportation for Airbus and Boeing.
1 Pricing.
Pricing and distribution is one important aspect that Airbus and Boeing show as affecting its supply and demand. Air transport companies all over the world are competing for global recognition and the highest number of passengers, fleets and accommodation. The competition was fueled by the high development of economies among nations, the establishment of low-cost carriers and the sudden and consistent need for air travel (Cook & Billig, 2017). The notion has led to the reduction in air fees and the abolishment of specific conditions. Not only does the issue of pricing impact the forecasts of the two companies, but force them to devise new ways of pricing their flights to increase the buying of their tickets and the number of customers for higher profits. For instance, both organizations have adopted a new strategy where they have reduced t...