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Microeconomic market report

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Airbus and Boeing are the two producers of the commercial jet airline in the world. The companies help each other in identifying their strength through the competition. For instance, the Boeing Company canceled its super development of superjumbo. They did this since they realized that the market was not ready. This seems that the company did in-depth analyses of the consumer’s needs. Despite this, their rival Airbus is predicting sales of 1, 400. Therefore, when the Boing is afraid of starting new production, their rivals are taking advantage and increase their sales. The linked information shows that the two firms were involved in the cancellation of the boing project. The two firms share various information, which helps in decision making among them. Withdrawer of the Bong superjumbo project was facilitated through sharing information since the market was not ready to sustain rival investment. In their operation, firms look at how they will remain in the market without causing any harm to each other. External forces such as jet fuel prices are likely to affect them negatively or positively and have to come up with a conscious decision to help them prevent a negative impact.

The 737 max was developed as a rush job to counter their only rival Airbus who had introduced A320neo, which was a direct competitor to their 737 Next Generation. The A320neo could fly farther on less fuel. The emission is also low than any other narrow-body airplane. Problems associated with 737 Max may increase technological competition among the two firms. Max has technology that can fly the plane automatically with less handling from the pilot.  Despite the challenges, this was a great innovation that calls for future improvement of an aircraft that can fly automatically. Therefore, these organizations will have stiff competition I developing their next projects. Also, a failure to correct the fault in their software may continue to cause more accidents that may end consumer trust. This will build a rival between the two firms. Innovation imposes more challenges among the firm since each of them has to be more creative to ensure that they have increased the efficiency of their planes. Therefore, this may increase their relationship since they will have to seek for information amongst themselves to avoid challenges in their projects. 737 Max will increase prices since more people may end up shifting to Airbus, and to counter this, Boeing will end up producing a more efficient plane to counter its rival.

While choosing aircraft for my client, I will consider the budget. It is essential to know the budget, and from this, selects the plane to use. The reason for this is that aircraft prices range significantly, and you need to consider the one that fits your budget. Also, it is essential to find the size and engine of the lane. The size can either refer to the interior space and its capacity since there are varieties. I will also consider my passengers. When dealing with clients association, then the aircraft should be outstanding in providing luxurious travel levels. If it is only transporting staff members, then a standard plane will be enough. In my tendering, I will use a negotiated tender.  This will allow me to hear the prices offered by both companies, and I will be able to select the lowest price. The airline may have some faulty, and to cover for this, I have to negotiate for an insurance cover. Secondly, there is a lot of regulation and restriction associated with aircraft. Therefore, I will have to go through the rules and adhere to them.

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