Eads Pporters Analysis

EADS

In July 2000 EADS was created by merging Aerospatiale Matra of France, DASA of Germany (DaimlerChrysler Aerospace AG excluding MTU Triebwerke) and CASA of Spain(Construcciones Aeronauticas SA). Aerospatiale Matra was already listed on the Paris Stock Exchange prior to the merger. Its shares were then swapped on a one-to-one basis and new shares were issued (see development of share capital )

 









Bargaining power of suppliers:  EADS is one of the largest defence contractors and has an integral system of procurement. They have over 2000 suppliers.

 
 The sourcing strategy is very complex and they grade their suppliers so they have a complete control over their supplier system.
They have a system where they involve their supplier from the initial stage of projects.
Satyam received this prestigious distinction after a stringent selection process involving approximately 2000 suppliers. The Tier 1 designation is part of an EADS program called E2S, which supports Airbus's "Power8 program", an initiative that calls for the organization to outsource critical activities in an effort to save 2.1bn euros (US$3.25 bn) annually.
The fact that today they maintain a over 2000 suppliers and the size of their operations actually gives them a strategic advantage over them. They source over 75% of their material from Europe itself hence they have not yet gone on a large scale into the global environment to source their material hence they can have  a better bargaining power over their suppliers.





Bargaining power of customers:  Here with a series of failures in the recent past were they had overspent and delayed the deadlines of their new military transport vehicle ...
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