Question

Identification of at least two key competitors to Thales and a Five Forces analysis showing the positioning of these competitors?

(250 words roughly)

Answer 1

Thales has 2 major rivals in Boeing and Airbus

5 Force Analyses for Boeing and Airbus

Boeing is the largest aerospace company in the world.

Airbus is also one of the leading names in Aerospace market.

Power of bargaining of suppliers:

Due to company size and its financial influence in market, Boeing has a greater bargaining power with its suppliers. Upper hand in bargaining comes from the fact that Boeing has a far better ability of payments.

Airbus commands an upper hand over all its suppliers. These suppliers have certain rules and compliances to follow which are related to quality of products and their man power. Therefore Supplier bargaining power is low.

Power of Bargaining of Customers

In today’s world customer is the king. Customers command higher bargaining power. But, with Boeing, the story is different. The bargaining strength of Boeing is also verified from the fact that it has a high backlog of $500 billion. Overall, it has a moderate bargaining strength with customers

Airbus manufactures great aircrafts which are highly in demand with the customers. Its overall image and delivery of high and fine quality products gives moderate powers to the customers

Substitute Threats

Boeing has very few to no substitutes for aircrafts makers. Although there are few makers who give same quality as Boeing, still the threat of substitute remains low for Boeing.

Airbus also has a low threat from substitutes due to the fact that it also has niche customer base the demand for its unique and quality aircrafts has been growing in the market.

Threat from New Entrants

Rate of new entrants entering this market is very low due to huge investments in skilled labour and technological research and development. Apart from this, high level of legal regulations and compliances in this industry make entry difficult. Therefore, Boeing has very low threat from new entrants.

Threat from New Entrants is low for Airbus also.

Level of Competition within Industry

Quality of products and image of Boeing are 2 major factors that act as slight moderators. Also, financial stability of Boeing in market helps it retain the edge. Still, competitive rivalry is very high for Boeing.

Although there are few players in aircraft industry, but still level of competition is high amongst them and edge is gained by delivering high level of quality and brand image.