History Of Eurocopter From 1970-2008

Introduction

Eurocopter provides suitable products at suitable times. This is the backbone of the company’s strategy and it explains why they have grown to become global leaders in a volatile yet competitive environment.

Eurocopter confirmed that it is the global leader in helicopter manufacture in 2007. The company boasts of a whooping fifty-three share in the provision of helicopters in the para- public and civil sectors. Additionally, the company provides thirty percent of all the world’s helicopters. The company received eight hundred and two helicopter orders in that same year; this is indeed proof that the company is a force to reckon with in the helicopter industry. Besides these, the company recorded a turnover of four billion euros in 2008. In light of all these success stories, the company must have a secret formula for its success; it lies in the company strategy. From 1970, the company has been consistent in product innovation, expansion strategies and good customer service. The essay will unravel some of these strategic tools and options and then link them to the company’s success in the helicopter industry. (Russian Aerospace, 2007)

Expansion

The Eurocopter Group has witnessed one of the highest rates of expansion and acquisitions in the helicopter industry over the last three decades. The reason behind this move is to establish the company as an influential force in local environments yet at the same link the success to a global enterprise. It is a known fact that haphazard and unnecessary expansions can be the source of demise for nay given company. Eurocopter management realized this and this is why they have been conducting mergers and expansions in a systematic manner. The company identifies regions and countries with promising markets and then establishes subsidiaries in those areas. For instance, the UK market has been particularly receptive of the company’s products and this was why the company has tried establishing a strong name for itself in that region. The company expands its market base by targeting local leaders. Before the company established full assembly lines in France and Germany, they examined al the local players in the market and then decided to choose the company with the highest level of international experience. They also used such an approach in the Asian continent especially in China. Initially, the company enters into a partnership agreement and then eventually becomes independent. One such example occurred in the year 2007 when the company bought out the McAlphine Helicopters Company located in Britain. In the 1990s, the company had only ten percent shares in the company but it eventually purchased the remaining percentage and this company is now a Eurocopter subsidiary.

Eurocopter’s expansion strategy is unique to the company. While other helicopter companies may decide to sell their services to local companies in order to penetrate different markets, the company normally insists on owning all its subsidiaries fully. Eurocopter believes that entering into partnership agreements is more of a temporary strategy. Such an approach could work for companies that are simply trying to survive in the industry or those who may target increasing market share on a temporary basis. (Eurocopter, 2002)

One cannot talk about expansion without mentioning the globalization factor. There are plenty of international players in the corporate world today. This means that in order for a company to gain a reputable position in their respective industry, they need to embrace international markets. Eurocopter is an exemplary model of this phenomenon. Part of the company’s corporate strategy is to establish itself as a global leader. This is why the company has seventeen subsidiaries located in five different continents of the world. Not only has the company established subsidiaries in different regions, it has also created numerous centers, agents and a vast network of distributors. Eurocopter’s customers come from one hundred countries and they account for ten thousand helicopters in operation currently. The reason for such an approach is the current helicopter industry. This industry is highly global and companies must make sure that they enlarge their mark in influential markets of the world. The company is constantly focusing on emerging markets. Once it identifies a region that has the potential for providing good business, then it strengthen sties there. This means that the company is quite sensitive to economic and social factors affecting countries all over the world. For instance, the oil industry has largely determined where the company’s next expansion strategies will be. This is because there have been fluctuations in the world over. Consequently, oil explorers have been quite busy trying to discover other sources. Eurocopter embraced this opportunity by supplying helicopters necessary for the exercise. Oil rich countries became new clients for the helicopter supplier. (Eurocopter, 2000)

The company normally makes sure that it is at ease with local markets, this means that it takes the time to understand the forces coming into force in each country. For instance, the company established a Division that would serve the European market. This occurred in the year 1992. At that time, the company mainly catered to France, Spain, and Germany. However, the company had not established itself well in the UK market. After making a mark in the European market, it then built the confidence to proceed with a new subsidiary in the UK. Similarly, the helicopter supplier has also been quite consistent in the American market. It has a secured the military segment by delivering helicopters consistently to the US army. After establishing such a reputation, it had adequate support to open up other markets in regions of the country such as Mississippi and Lakota.

The company normally designs its expansion strategies to fall in line with production costs too. For instance, if the company receives an order from France, it would have to deploy minimal technology and work force from their mother company because it already has some assembly lines there. By using local resources (human, capital and financial), the company can market its products as locally made. This boosts loyalty and increases their profit margins through cost reductions. Overall, the company normally intertwines its expansion goals with its profit making goals.

Consistent product improvement

Eurocopter is committed to product innovation. The Company invests in designing the latest features to improve on its helicopters. The helicopter industry is quite a dynamic one because players keep introducing new models. Eurocopter has stayed ahead of all other players since it has ample capacity to implement these modifications. To ascertain that the changes meet required standards, the company conducts flight tests consistently. Creative employees give the company’s fleet ample support. (Eurocopter, 2001)

Over the past three years, the company has consistently introduced new products. The following are just some of the innovations the company has added to its product range;

-EC 135 Eurocopter

-EC 120 Colibri Eurocopter

-NH90 Eurocopter

-Dauphin Eurocopter

-BK 117 family helicopter

Over the past thirty years, the company has identified gaps in the product market. it has also been quick to meet these new demands. The company has introduced about ten helicopters form its inception to present day. This is a huge indication of the level of commitment the company has made towards product innovation. A specific example of this commitment occurred in the year 2002. There was a shift from heavy weight to lightweight helicopters in numerous industries. In response to this demand, the company came up with the EC 175. It can proudly boast of creating a competitive edge in the helicopter industry through new helicopter models. The company has dedicated a whooping fifteen percent of its capital towards research and development. They have created environmentally friendly helicopters since helicopters emanate excessive noise; the company’s research team is currently looking at ways of making their helicopters quieter. Additionally, the company’s research team is examining methods of reducing their carbon footprint by coming up with helicopters that require less amounts of fuel. As if these are not enough, they are also working on helicopters that can be compatible with all types of weather. These programs have very high chances of success because some of their earlier innovations have done quite well in the past. For instance, Eurocopter was the first company to introduce helicopter that utilizes wire technology; it was the NH90 model. Not only does the company introduce very new products, it is always improving its products and this has gone along way in keeping them at the top. (Australian Aerospace, 2007)

Tactful choice of markets

It should be note that the helicopter industry has the potential to do business with a large number of civil services. Eurocopter has realized this potential and has taken full advantage. Over the last thirty years, the company has expanded its market share in the law enforcement and military sectors. For instance in the United Kingdom, the company provides over seventy percent of all the helicopters in the region. It went out of its way to secure this market because it is quite reliable and has potential for partnership.  The company also boasts of a similar percentage in the military sector. Management at the company realized that the commercial sector is quite competitive and this was why the company did not place as much emphasis on this market segment as it did with the former mentioned areas. However, it anticipated some increases in this segment and hence introduced a VIP segment for helicopter use in business areas. Consequently, one can assert that company has been quite tactful in the process of selecting its market. (Eurocopter, 2007)

The company has demonstrated a lot of foresight when selecting their markets over the latest thirty years. This is because they normally predict future trends and patterns before they make a choice to enter certain market. For instance, the company realized that there would be minimal changes in the civil and par military segments. Despite huge shares in these segments, it is highly unlikely that they will increase. Consequently, the company settled on expansion into emerging markets. The Asian economies began doing well in the 1990s; the company foresaw the potential in those areas for their products and began penetrating those markets. This has resulted in relatively good responses since the company has sealed a deal with Korea to provide them with PHP models. Similarly, the company is working closely with the Chinese markets to provide them with the EC 175. Such foresight has been instrumental in choosing the most appropriate markets for the products.  China actually ahs an assembly line for the Dauphin and Super Frelon models. The company was quick to foresee the emerging markets and established itself early enough. One can apply the same analysis in the Latin American and Middle Ester regions. The company realized that these regions were plagued with high instances of terrorism. Consequently, the regions needed more helicopters to assist them in law enforcement. After intense consultation, the company approached those markets and the responses from those regions have been quite positive too. The Middle Eastern region also began growing in the 1990s; cities like Dubai became major tourist destination. Since the tourist industry is one of the major industries supporting the helicopter industry, Eurocopter foresaw this issue and established a presence in that region.

Customer service

The helicopter industry does not just supply tangible products to its market segments. It also utilizes service provision as a source of competitive advantage. Eurocopter is always thinking of new ideas to boost the customer service. For instance, the company has introduced a customer hotline that is open round the clock. This was after the realization that customers were located in different time zones and they may need help at seemingly odd hours. Besides this, the mature of the helicopter industry is such that companies need to be prepared for whatever instances or emergences that arises. (Global Security.org, 2007)

Provision of good safety initiatives also ensure that clients are satisfied with what the company has to offer. The helicopter industry is quite susceptible to aeronautical defects and if these instances occur regularly, then these could tarnish the company’s image. To counter this, the company created a team of experts to ascertain that all helicopters in the company are in top condition.

The company is also fond of establishing teams to oversee the smooth project delivery. Because the company is always expanding its product line and distribution network, then there is a need to select a team that will ensure smooth transition. They established such a project team in Britain to ensure smooth upgrades. These services are part of the reason why the company is doing well. They have tried monitoring the kind of problems facing their clients.

The company is always communicating with their clientele in order to stamp out any inefficiency in their services. For instance, the company had created two specific models independently in the 1990s. These were; The NH90 and The Tiger Eurocopter models. Because the company was creating fro scratch and they were employing new technologies, the company recorded some hitches in product delivery. Some customers complained that they could not get their products on time and this affected the company’s name. However, the company began explaining this to their clients; thy treated them like partners. They explained to their clients about all the problems they were having in production. Since they used a dialogue approach, it was possible to exchange ideas and get the customers to their side. (Defense Industry Daily, 2007)

The company clearly identifies areas where it may be performing poorly and then makes quick corrections. For example, over the past decade, industry surveys have shown that Eurocopter’s after sale services are not as good as their products. In response o these criticism, the company embarked on some changes in its distribution networks. These are just some of the things is did to improve its after sales image;

• Creation of a logistics platform in France
• Reduction of delivery times in the American, European and Asian continents
• Introducing inventories in Brazil
• Linking warehouses to their international distribution system

All these changes indicate that part of Eurocopter’s strategy in customer service is to accept positive criticisms and doing something about them as soon as possible. Such an approach has kept their reputation at the top.

Industry reviews have also indicated that some aspects of the company’s customer service are top range. For instance, stakeholders respect Eurocopter for delivering quality products. Customers are satisfied with their quality because the number of defects is tending towards zero. As if this is not enough, the company has earned recognition for its shipping parts delivery. This means that the company recognizes that helicopters by their very nature require ample supply of spare parts. The company ships these products efficiently thus making their services reliable. Eurocopter has also tried improving its lead times in most parts of the world. Besides these, Eurocopter is quite good at repair and overhaul services.

Companies can deliver customer service through establishment of good relationships with suppliers. This is because good relationships between suppliers and the company allow efficient and reliable production of goods and this goes a long way in meeting client needs. This is the reason why the company’s supplies team is fond of using the phrase of ‘Shared Effort; shared success’

Staff management practices

Eurocopter has also been strategic in the process of employee recruitment, employee retention and other human resource features. Over the past thirty years, the company has used employee practices as part of their competitive advantage. For instance, they recruit employees from subsidiary countries. The reason why the company has done extremely in the United States especially in relation to the military service is due to this approach. Whenever, a specific country bids for helicopters, the company will always earn extra points or recruiting members of staff from the country. This means that they are providing jobs for the large market. (Australian Aerospace, 2007)

Another aspect of the company’s recruitment strategy is in employing staff members with the right experience. Most of their employees have over ten years tenure in the helicopter industry; an indication that their selection process is rigorous. Their job retention rates are also quite good; a free working environment enhances this. The company motivates their employees through provision of a good working environment. Additionally, employees have a right to access some of the most crucial employee benefits in the human resource sector. They are entitled to receive the following benefits:

• Salary bonuses
• Holiday packages
• Medical insurance
• Housing loans

Conclusion

As stated earlier in the essay, Eurocopter has the capacity and drive to provide the right goods and services at the right time. This features in its expansion strategy. The company is good at identifying emerging markets. This has worked well especially in relation to France Germany and Asia. Additionally, Eurocopter prefers entering into partnership agreements with local companies and eventually becomes independent. (Eurocopter, 2001)

Because technology is a driving force in the helicopter industry, Eurocopter has been consistent in innovative technologies and product improvement. The company was the first to introduce fly by wire model and invests fifteen percent in product development

The Company is also quite tactful when choosing its markets. For instance, it has realized that there are heavy returns in the Para military and civil service sectors. Consequently, the company has embraced this market segment and is now a force to reckon with. Additionally, the company anticipates future market growth and then makes partnership agreements with those respective countries. By doing this, the company has managed to secure markets that their competitors had not identified.

Eurocopter is also quite effective at providing good customer service. For instance, the company dialogues with clients, delivers quality goods and has improved its lead times. Lastly, the company provides a good working environment thus encouraging better productivity. This commitment to providing the right helicopters at the right time has kept the company on top.

Reference:

Russian Aerospace (2007): All the World’s Rotorcraft, retrieved from http://avia.russian.ee/helicopters_eng/eurocopter_ec-120.php accessed on 2008/06/05

Australian Aerospace (2007): EC120 Assembly Line, retrieved from http://www.ausaero.com.au/CivilHelicopters/EC120BAssyLine/tabid/207/Default.asp

accessed on 2008/06/05

Global Security.org (2007): HC-120 (EC-120) Helicopter, retrieved from http://www.globalsecurity.org/military/world/china/hc-120.ht accessed on 2008/06/05

Defense Industry Daily (2007): Eurocopter in China, retrieved from http://www.defenseindustrydaily.com/2006/03/codeveloped-in-china-us-homeland-security-orders-ec120-helis/index.ph accessed on 2008/06/05

Eurocopter (2007): Eurocopter Hands over the First of Six EC120 Training Helicopters in German, retrieved from http://www.eurocopter.com/publications/FO/scripts/newsFO_complet.php?lang=EN&news_id=45 accessed on 2008/06/05

Eurocopter (2002): Eurocopter Signs Contract At Aero India, retrieved from http://www.eurocopter.com/publications/FO/scripts/newsFO_complet.php?lang=EN&news_id=42 accessed on 2008/06/05

Eurocopter (2000): 400th EC120 Delivered To, retrieved from

http://www.eurocopter.com/publications/FO/scripts/newsFO_complet.php?lang=EN&news_id=41 accessed on 2008/06/05

Eurocopter (2001): U.S. Customs & Border Protection Takes Delivery Of Its First EC120, Defense Industry Daily

About the Author

Author is associated with SuperiorPapers.us which is a global Research Papers and Term Papers Writing Company. If you would like help in Research Papers and Term Paper Help you can visitEssay Writing and Buy Research Papers or Term Paper Writing

Best Custom Social Networking Software: Review by a customer