8-3 Case Study: COMAC Enters the Global Aerospace Industry: A Duopoly Faces Competitive Dynamics

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Review the duopolistic rivalry over the last five years between Boeing and Airbus (EADS) in the large commercial aircraft segment of the aerospace industry. Include in your research the new Chinese entrant to the market, Commercial Aircraft Corporation of China, Ltd. (COMAC or AVIChina on the Hong Kong stock exchange). COMAC is a division of Aviation Industry Corp of China, a state-held firm.

  1. How have anti-dumping and anti-trust laws affected global competition within this segment? What is the role of domestic government institutions to the competitiveness of the three firms?
  2. How are attacks, counterattacks, and signaling currently used by Airbus and Boeing to manage competitive dynamics?
  3. What are your strategic recommendations for COMAC to defend its domestic market from the Boeing and Airbus current strategic approach?
  4. In your opinion, what strategic approach from the Ramamurti (2012) article would be most effective for COMAC’s expansion into Western segments of the industry?

Suggested Resources:
Boeing and Airbus websites: “Extended Market Outlooks”; COMAC

Library Databases:

  • Company information: OneSource and Lexis-Nexis Academic: Company Dossier
  • Industry information: Net Advantage and MarketLine

Commentary may include Reuters, WSJ, Financial Times, or industry-related publications

For additional details, please refer to the Case Study Guidelines and Rubric document.

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