...------------------------------------------------- INTRODUCTION This case discusses the history of Boeing and salient forces affecting the global aircraft industry, along with the key strategic issues driving Boeing’s competitive strategies. Boeing and Airbus dominate the global aircraft industry, but have very different visions of the future of commercial air travel. Consequently, the strategies they have devised to manage the competitive environment are disparate. The case provides a unique opportunity to explore these differences, how functional strategies support the overall competitive strategy, and the critical decisions now faced by both competitors. The objective of the case study is to evaluate current industry conditions and to make corrective recommendations to improve Boeing’s strategy. The shortcomings of the company’s functional strategies should also be examined in search of measures to improve organizational performance. * Compare the two competitor's strategies. Based on the industry environment, what conclusions can be drawn? * Since Boeing made its decision to pursue a product strategy based on the point-to-point airline business model, what new market conditions have developed? What impact are they likely to have on the company’s success? * Evaluate the pros and cons of Boeing's outsourcing strategy. Is there adequate support for the company's decision to "offload" parts production? * Consider the status of commercial...
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...Boeing |1 Boeing Strategic Analysis Report Professor Jiang Bus 189 Matt Fong Karolyn Vong Kenneth Wong Vivian Li Jae Woo Chae Joseph Eslao Boeing |2 Assessing the Industry Each year the strong economic growth of the U.S. has led to sustained high oil and fuel prices. Between 2003 and 2007, jet fuel expenses have increased dramatically by 15 percent to more than 30 percent of operating cost. Because of this, many airlines are demanding new aircraft that are fuel efficiency in order to help reduce their operational costs. The current trend of increasing fuel prices plays a key role in increasing the current demand for new aircraft or commercial airplanes that are more fuel-efficient. In addition, the rising fuel prices have taken a big effect on the economy. As fuel prices affect consumer goods and spending, leisure travel is expected to decrease, thus affecting the airline industry's bottom line. Furthermore, since the economy has gradually moved into a recession from the effects of rising fuel prices, many airlines that are struggling to stay out of bankruptcy, are looking for more ways to become cost effective. Thus, further fueling the demand for new commercial aircrafts to become more fuelefficient (2007 Annual Report). In order to save on costs so that Boeing can provide lower prices to its customers, Boeing and its competitor, Airbus, have both turned to outsourcing. Outsourcing has allowed Boeing to become more competitive. Furthermore, the option of outsourcing...
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...7/21/2015 Boeing, Airbus Rivalry – Lessons in Strategic Planning Tuesday, July 21, 2015 Search: GO Home Terry Corbell Bio Management Services Seminars – HR Training Contact Author OpEd Economic Analysis U.S. Economic Forecasts Subscribe BusinessCoaching Topics: Planning Operations Marketing/Sales Finance Tech Public Policy HR Career Tips Wall Street Leadership Newsroom Video Reports: National & World Politics Business Science & Technology Sports Health Entertainment Oddly Enough Browse > Home / Marketing/Sales, Planning / Boeing, Airbus Rivalry – Lessons in Strategic Planning By Terry Corbell The Biz Coach http://www.bizcoachinfo.com/archives/1326 1/6 7/21/2015 Boeing, Airbus Rivalry – Lessons in Strategic Planning Boeing, Airbus Rivalry – Lessons in Strategic Planning Updated Feb. 24, 2015 It would make a great Hollywood movie. As of February 24, Boeing leads Airbus in the sales war in 2015, 69 to 28 jets. Boeing also beat Airbus in 2014. Probably to the chagrin of the American company, Airbus has invaded Boeing’s home turf – it’s assembling 10 percent of its A320s in Alabama. And China is building jets to compete with Boeing and Airbus. Companies can learn valuable lessons from the BoeingAirbus competition. In terms of strategic planning, it has been quite a rollercoaster ride with no end in sight. Have both sides done enough strategic homework? Should major manufacturers rely on government funding...
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...Table of Contents 1. Executive Summary 2 2. Reasons Boeing cancelled its development of the SuperJumbo 3 2.1. Boeing had an alternative to developing a new aircraft 3 2.2. Boeing already had market share 3 2.3. Boeings market analysis did not show sufficient demand 3 3. Strategic weaknesses in Airbus’s customer strategy 4 3.1. Strategic Analysis of Airbus 4 3.2. Analysing resources and capabilities of the organisation 5 3.3. Shaping the organisation through vision, mission and purpose 5 3.4. Customer strategy at Airbus 6 4. Is the Airbus strategy driven by customers? Or rather more by a sense of rivalry with Boeing? 6 5. Airbus’s demand estimates and implications for a customer driven strategy 7 6. Support for Airbus’s decision to proceed with the SuperJumbo 9 7. Conclusion 10 8. Bibliography 11 1. Executive Summary Boeing cancelled the development of the super jumbo after it had conducted a research. What informed this decision was the fact that there was no sufficient demand to justify the $7 billion investment. Instead of pursuing further the super jumbo development they decided to stretch their existing aircraft to cater for more passengers. They had no pressure to develop the super jumbo because they had the largest passenger aircratf at the time and had no competition at that segment of the market. This means that the segment of the market was monopolised by Boeing Airbus on the other hand wanted to penetrate the long range passenger...
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...Management Planning at Boeing Brian Newton MGT/330 December 1st, 2014 Steven Friloux Management Planning at Boeing To be successful in today’s competitive business world, organization and strong leadership is key. At The Boeing Company, this is no different. As one of the largest corporations in the world, they strive to set goals and plan a future around reaching those goals in a way that they can be the most prosperous. In the complex business economy of today, there are always influences that affect the way leadership paves the way. Issues regarding legality, ethics, and responsibility that follow being a major corporation are just a few. These play a major role in strategic, tactical, operational, as well as contingency planning. The Boeing Company and its leadership continually reach toward improving the organization, and the daily planning is inspired by numerous factors that shape who they are. Planning Functions Having an organized plan can be important to success and growth of a company, and Boeing follows the basic template of the planning process. It begins with the initial goal to be set, followed by an evaluation of the situation to determine what resources will be needed. This analysis is drawn from different areas such as past and current work conditions and how they can improve. A derivative plan is also brought to the table before finalizing the final decision. And lastly is...
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...Executive summary Boeing was founded in 1916 in Seattle, Washington and became one of the World’s largest and leading manufacturers in making commercial and military aircrafts. The company has been involved in acquiring international firms and making strategic alliances with many aerospace pioneers in the past. Some of the big acquired and merged aerospace companies are Hughes Space and Communications, North American Aviation, McDonnell Douglas, Rockwell International and Jappesen (Boeing, 2012). The purpose of this report is twofold and accordingly the report is divided into two parts. The first part consists of a critical evaluation of the internal and external business environments of Boeing to find out to at what extent Boeing is strategically fit with its current business environment. In the second part, an improvement strategy will be recommended to the company to effectively manage its supply chain practices after critically reviewing the feasibility, acceptability and suitability of the strategy. Contents Executive summary 1 Introduction to Boeing 787 Dreamliner 3 (PART A) 4 S.W.O.T analysis of Boeing 787 Dreamliner 4 Strengths: 4 Weaknesses: 5 Opportunities: 6 Threats: 6 Boeing 787 Dreamliner competitiveness 7 Business model of Boeing Dreamliner 787 9 B787 SYSTEMS AND EQUIPMENT: 9 MANUFACTURING/QUALITY: 9 Design and features of Boeing 787 Dreamliner: 10 Strategic alliance of Boeing 787 Dreamliner 12 Challenges posed by the business...
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...topic uploaded? Give us your contact info and we’ll get back soon with details. — Ashish Michael First Name *[pic]Last Name *[pic]Work Email *[pic]Phone *[pic] Address *[pic]City *[pic]Zip code *[pic]State *[pic]Country *[pic]Message[pic][pic][pic] [pic][pic]Cancel Bottom of Form Sending [pic] Your info has been sent to Ashish Michael. Loading [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] ‹› [pic]Case analysis boeing 787Document Transcript 1. ASHISH JUDE MICHAEL What went wrong? Boeing 787: Dreamliner A detailed analysis of issues causing delay of Boeing 787 and suggesting a model which would had prevented these issues. (This case analysis is only for academic purpose) P G P E x 2 0 1 2 -‐ 1 3 I I M S h i l l o n g Boeing 787:Case Analysis 2. 2 Boeing 787:Case Analysis Introduction (Extract from Case): In April 2008, Boeing confirmed a delay in the 787-‐airplane...
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...STRATEGIC ACTIONS: STRATEGY FORMULATION 1. Compare the two competitor's strategies. Based on your knowledge of the industry, what conclusions can you draw? Strategy Comparison Boeing Airbus Growth platform Point-to-point Increased fragmentation in travel to solve problem of airport congestion Hub-and-Spoke Expecting growth in travel between major hubs, particularly in Asia Product development Functional product differentiation 787 - mid-size Objective to offer the passenger the most comfortable point-to-point travel experience with as few intermediate stops as possible - more standing room, larger windows and bathrooms, ambient light settings in the cabin to adjust to the time of day, and higher cabin humidity levels. A-380 - superjumbo Will be the largest in the world, holding 550 passengers - will allow 10 million additional passengers per year to fly between airports with no increase in flights - can be configured with bars and specialty boutiques Features Fuel efficiency, eco-friendly, significantly less costly than Airbus' comparable product, light-weight composite materials, simple to operate Commonality - saves airlines costs Estimated release date May, 2008 October, 2007 Supply chain logistics Moving up the value chain - outsourcing - integration and assembly Tighter control over shared knowledge - efficient JIT programs with alliance supply partners Investment in new models $8 billion $14 billion The competitors' views of domestic (regional)...
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...Mark Twain Boeing was founded in 1916 by William E. Boeing (1881-1956). Currently Boeing is the world’s largest aerospace company and the principal maker of commercial jet transports. Boeing leads the way in developing the single-wing planes in the 1930s; and the first U.S. jetliner, the Boeing 707. Boeing is also a leader in space technology, defense aircraft and systems, and communication systems. According to Boeing successful startup airlines must begin with a sound business plan. Boeings established plan of action has been so successful they publish a guide for starting and running competitive business. Boeing’s detailed planning document typically includes: * Analysis of the market and competition * Brand positioning * Description of the business and opportunity * Details about the operation * Management team biographies * Discussion of risks and obstacles * Pro forma financial statements/projections * Capitalization plan * Brand development * Implementation strategy. (Business Plan, para. 1). Major Components of a Typical Startup-Airline Business Plan include an Executive summary, which covers the business concept including revenue and cost, what market is to be reached, competitive strategies and financial considerations. The Industry and Target market and Competitive analysis will examine Demographics / population, take a look at Competitor service offerings and fare analysis. A company’s strategic plan should...
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...Boeing: Redefining Strategies to Manage the Competitive Market CASE ASSIGNMENT As the industry watches to see how Boeing's strategy performs against Airbus's strategy, management at Boeing is anxiously monitoring market signs to determine its next competitive move. It has underestimated Airbus in the past, and despite the fact that with billions of dollars invested and strategies that cannot be easily abandoned, Boeing needs to be prepared to respond to changing industry needs as quickly as they are detected. You've been asked to join a strategic planning discussion, and hoping to contribute to the meeting, you decide to take one more look at Boeing's situation to see if you can formulate some insight that could give the company an edge against Airbus. Your analysis includes the following elements: 1. Compare the two competitor's strategies. Based on your knowledge of the industry, what conclusions can you draw? 2. Outlining a rough competitor analysis, what does the level of interdependence between the rivals reveal about competitive behavior that can be expected from Airbus? 3. Evaluate the pros and cons of Boeing's outsourcing strategy. Do you agree with the company's decision to "offload" parts production? 4. Review Boeing's cooperative strategy. What are the risks of its partnership arrangements? 5. In what ways can Boeing's international strategy be improved? 6. What are some of the near-term results you anticipate in the airplane production...
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...how Boeing's strategy performs against Airbus's strategy, management at Boeing is anxiously monitoring market signs to determine its next competitive move. It has underestimated Airbus in the past, and despite the fact that with billions of dollars invested and strategies that cannot be easily abandoned, Boeing needs to be prepared to respond to changing industry needs as quickly as they are detected. You've been asked to join a strategic planning discussion, and hoping to contribute to the meeting, you decide to take one more look at Boeing's situation to see if you can formulate some insight that could give the company an edge against Airbus. Your analysis includes the following elements: 1. Compare the two competitor's strategies. Based on your knowledge of the industry, what conclusions can you draw? 2. Outlining a rough competitor analysis, what does the level of interdependence between the rivals reveal about competitive behavior that can be expected from Airbus? 3. Evaluate the pros and cons of Boeing's outsourcing strategy. Do you agree with the company's decision to "offload" parts production? 4. Review Boeing's cooperative strategy. What are the risks of its partnership arrangements? 5. In what ways can Boeing's international strategy be improved? 6. What are some of the near-term results you anticipate in the airplane production industry? Long-term results? STRATEGIC ACTIONS: STRATEGY FORMULATION 1. Compare the two competitor's strategies...
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...this firm and how the policies impact business decisions. It will discuss how the firm uses technology for strategic advantages and the impact of globalization for the firm. Economics for the Global Manager Introduction The world’s largest; Boeing is an aerospace company that leads the manufacturing of commercial jetliners. Boeing also has manufacturer defense, space, and security systems (About Us, 2013). Boeing’s global operations have supply and manufacturer activities outside the U.S. (Backgrounder, 2013). The economic concepts that apply to this firm are manufacturing of commercial jetliners as well as defense, space, and security systems and these concepts can be used to address the firm’s problems and opportunities (About Us, 2013). The economic and political policies that affect this firm are economic growth and political turmoil and these policies impact business decisions (Long-Term Market, 2013). The firm uses technology for strategic advantages by ¬making plans in its research and development investments to maximize potential returns and the impact of globalization for the firm (Arkell, 2005). Boeing Boeing is the world’s largest aerospace company that has a long tradition of leadership and innovation. It leads the field in the manufacturing of commercial jetliners as well as defense, space, and security systems. As a top exporter in the U.S., Boeing has customers in 150 countries with products including aircraft, weapons, defense systems, and communication...
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...Case The Boeing 777: A Financial Analysis of New Product Launch [pic] Eduardo Lioy Keya Williams Ritwik Malvi Jonas Angeles Alexis Heideck 1. Introduction/ Case Summary: The Boeing Company is an Industrial Aircraft Design and Manufacturing Firm, diversified in its offering of products for both the Defense Industry and the Commercial Airline Industry. In October 1990, CEO Frank Shrontz has announced the launch of a new product, the Boeing 777. A medium-to-large passenger aircraft, the 777 would enable the flexibility to carry passenger loads ranging from 350-390 passengers, over distances up to 7600 nautical miles. Already, Boeing has received orders from United Airlines, with delivery expected in May 1995 (p. 198). Aside from the technological advances represented in the 777, the launch of this new product promises some potential distinct strategic advantages. The launch of the 777 would provide a medium-to-large aircraft, filling a gap in Boeing’s total passenger aircraft product line. Boeing would now have a complete suite of aircrafts capable of addressing passenger loads ranging from 100-500. The 777 is specifically targeted to service routes in a high growth segment of the market, influenced heavily specifically by the high growth rate of the Asian market. The following is a financial analysis of the anticipated launch of the 777 product line. The analysis includes a comprehensive quantitative financial analysis of the projects profitability...
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...The Boeing 777: A Financial Analysis of New Product Launch [pic] Eduardo Lioy Keya Williams Ritwik Malvi Jonas Angeles Alexis Heideck 1. Introduction/ Case Summary: The Boeing Company is an Industrial Aircraft Design and Manufacturing Firm, diversified in its offering of products for both the Defense Industry and the Commercial Airline Industry. In October 1990, CEO Frank Shrontz has announced the launch of a new product, the Boeing 777. A medium-to-large passenger aircraft, the 777 would enable the flexibility to carry passenger loads ranging from 350-390 passengers, over distances up to 7600 nautical miles. Already, Boeing has received orders from United Airlines, with delivery expected in May 1995 (p. 198). Aside from the technological advances represented in the 777, the launch of this new product promises some potential distinct strategic advantages. The launch of the 777 would provide a medium-to-large aircraft, filling a gap in Boeing’s total passenger aircraft product line. Boeing would now have a complete suite of aircrafts capable of addressing passenger loads ranging from 100-500. The 777 is specifically targeted to service routes in a high growth segment of the market, influenced heavily specifically by the high growth rate of the Asian market. The following is a financial analysis of the anticipated launch of the 777 product line. The analysis includes a comprehensive quantitative financial analysis of the projects profitability along...
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...test of how much you have learned in the course. An alternative evaluation form could be the exam. Be therefore sure to demonstrate high quality knowledge from class literature and discussions. The case exercise: There is no right or wrong answer to a case, but there could be many ways to solve a case that are better than others. A good way to solve a case includes careful insight into the competitive situation for this company – i.e. what are their main strategic challenges – and a consistent, theory based approach to how this company can meet these challenges. Hence, it is not a right or wrong game, but more a quest towards a consistent, coherent strategy choice. When you begin, state the aim/focus of your case: When the reader starts to read your paper – he/she should know quickly what your intentions with this paper/case are. This section should be very short, but it sets expectations – what can the reader expect when reading this paper? Example: In this short paper I intend to discuss the strategic choices available to Boeing as the air traffic industry has changes...
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