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Submitted by kanaloa on December 7, 2007
Category: Business
Words: 581 | Pages: 3
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In analysis of Iberia's, Boeing's, and Airbus's actions surrounding Iberia's attempts to purchase new planes and Boeing's and Airbus's responses, it appears that all sides made mistakes that go against the environment they all operate in, the capabilities of the planes themselves, and current day marketing and selling principles, that eventually ended with none of them achieving maximized solutions to their benefit.
The first action taken that might not have ended with the most beneficial results was the stated intent of Iberia's Chief financial officer to start a highly competitive all out ‘horse race' to win the lowest and most maximized bids between Boeing and Airbus, which may have placed all three parties as opponents in a competitive action in which there seemed to be only one eventual winner, which would have been Iberia. None of the parties seemed ready to adopt a win-win approach. This may have defeated the ability to form beneficial partnerships between Iberia and Boeing or Airbus built on trust, understanding, and cooperation that may have ended up more beneficial to Iberia and Boeing and Airbus.
Iberia also initially stated that they wanted the most fuel conservative, most reliable, and cheapest to maintain planes. It was proven that the Boeing's plane actually was the most reliable and cheapest to maintain, with the added benefit of more seats. Boeing at one time attempted to prove this, and even Iberia's own engineers stated it was so as well. Why Iberia stated this and then appears to ignore it and decide based on price is unknown, and may not have served in Iberia's best interests in the long run anyway.
By all evidence this seemed to be a competition between Iberia to receive the lowest price, and Boeing and Airbus to win the contract but with the highest price obtainable. No evidence existed to show how much the actual manufacturing costs of the planes were, or what the operating cost and maintenance cost and...
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