If you were a new entrant into the bottom part of the narrow-bodied industry, as a Comac and Bombardier, what would be your long-term development strategy?. Management

The long-term strategy would be to develop an expertise in the narrow-bodied industry, create substantial economy of scale and gain customer loyalty. Once achieved, the companies should focus on improving their narrow-bodied aircraft, paying a special attention to fuel efficiency.

Even if these new entrants keep growing and developing successfully, it will be extremely had directly compete with credible and reputable companies like Boeing and Airbus. Hence, new entrants may consider joining forces and creating alliances in order to become more competitive.

In addition, new entrants should not rush into the wide-bodied segment. In fact, developing and brining into the market large jet aircraft is extremely costly and can be achieved only through economies of scale and absolute cost advantage (also brand loyalty). Once Comac or Bombardier achieve a strong brand position, they may consider developing wide-bodied aircraft. Nevertheless, new entrants should carefully monitor the external environment that may create some new opportunities (mainly technology innovations) for new entrants.