Battle for skies by piyawatr

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The analysis of competition between Airbus and Boeing

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									Q1 What is a duopoly market? How is competition dynamics structured in a duopoly market? What
are the pitfalls of a duopoly market?


       In the similar kinds of product have two large company competition in the market was
calling duopoly market. Duopoly market can be advantage or disadvantage for both company
depend on setting the agreement together. Two company can be collaboration or connive for setting
the product price which both will gain maximum benefit than try to discount or offer the better price
to customer. If both company contend about the price, the higher benefit will on customer. Most
case, Airbus vs Boeing, AMD vs Intel, and etc. They do not have any agreement about pricing and
also competitive to offer the better product to customer for increase their market share. Who offer
the better, cheaper, faster will become more succeeded in their business.


       The global aircraft manufacturing industry are very hard for the new company to entering
the commercial and civil aircraft business (High Barrier to entry). The aircraft business have very
high start-up cost for doing the Research and Development (R&D) for competition with the exist
airplane company, Airbus and Boeing. Including capital intensive production which refer to million
of parts, high technology assembly process, manufacturing infrastructure and a thousand of
employee. The aircraft also need a continuous improvement for effort demand from customer and
world changing. These factor made the cost per unit higher which made break-even level for each
aircraft model project taken over the decades.

								
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