Boeign and Airbus.

Question 1. What reasons did Boeing give for cancelling its development of the super jumbo? Why were these open to another interpretation? The reasons for Boeing cancelling its development of their super-jumbo: *Boeing carried out a study, which revealed that there was "insufficient customer demand" *This study also stated that only 480 super jumbos would be sold over 20 years *Therefore Boeing could not justify 7 billion US dollar investment Boeing's reasons for cancelling the super jumbo project were …

…However, only time will tell whether their strategy is the correct one for the future. Question 5. Would you recommended Airbus to proceed with the super jumbo? Yes they should follow through the super jumbo project. However, they need to ensure their strategy is driven by the customers and not only by future market trends. In doing this Airbus can be more confident that they are not strategically blinded by constantly trying to beat their competitors.