a) Provide a historical perspective on how the rivalry between the United States and the Soviet Union played out. It started in the early 1990s. The Soviet Union issued regulations to control many aircraft manufacturers. Many brands and companies have been merged. In the years following the collapse of the Eastern Bloc, large airline manufacturers abandoned the market due to poor sales. Therefore, only Boeing and Airbus remained in this market. We call this situation a duopoly. In the last ten years the competition has been very intense. Initially, Boeing had advantages over Airbus in orders. However, in past years, Airbus has received more orders than Boeing. Furthermore, Airbus is the winner in terms of the number of aircraft delivered, but Boeing is not far behind. b) Identify at least three (3) distinct factors that provided Boeing and Airbus a competitive advantage over each other and three distinctive missteps by each company that caused it to lose a competitive advantage. Boeing Three distinct factors: Technology. The Boeing 787 is made of composite materials which reduce fuel consumption to a certain extent. Although Airbus has improved its technology, Boeing's technique is more advanced. Strong Outsourcing Capability: Boeing has maintained a long and exceptional relationship with Japanese suppliers who provide high-quality components and efficient assembly lines. Historical Prestige: Boeing has a long history of providing reliable service and a good public image. Three distinctive missteps: Battery issues: These are electricity issues that cause several safety incidents such as fires. Battery problems result in a side effect of Boeing's public image. Supply Chain: Boeing has no experience in managing a multi-tier supply chain, which makes Boeing unable... middle of paper......Reference:1. Parimucha, J. (2010, November 3). Airbus vs Boeing: History in brief.WhichAirline.com. Retrieved April 25, 2014, from http://www. Whichairline.com/news/airbus-vs-boeing-the-history-in-short2. FIGHT OVER SUBSIDIES – BOEING VS AIRBUS. (n.d.). Global trade and logistics. Retrieved April 25, 2014, from http://www.globaltradeandlogistics.net/?p=393. Competitive factors in the aeronautical manufacturing sector (Airbus: Challenger to Market Leader). (2011, March 17). Competitive factors in the aeronautical manufacturing sector (Airbus: Challenger to Market Leader). Retrieved from http://assignmenthelpseries14.blogspot.com/4. How competition affects your strategic plan. (2011, November 5). Business strategy consultancy. Retrieved from http://www.methodframeworks.com/blog/2011/how-your-competition-affects-your-strategic-plan/index.html