THE BOEING COMPANY

Hoyan Yu
5/11/15

The Boeing Company
Topic: Boeing products, technology, economies of scale, forces of competition and experience curve effect.
Context: Boeing is one of the top industrialized companies of commercial aircrafts and other aircraft related products. The founding city was Seattle, Washington by William E Boeing. It was founded in 1916 and integrated on July 19th, 1934. Acquirement of defense in 1996 and space unit of Rockwell International expanded its market size. Later it merged with Mc Donnell Douglas to become the largest aerospace company. Boeing Company manufactures markets commercial aircrafts. It also provides associated support services to profit-making airlines across the world. It keenly engages in research and growth of armed weapon systems for defense purposes. In addition, the corporation broadened its expansion in information systems and space surveillance systems.
Boeing faces a solid contest from Airbus Company, which is its leading rival. The healthy competition has enabled them to enjoy duopoly in developing innovative aircraft with new sophisticated skill. However, Boeing benefits a larger market share for having a wide range of products and services. For instance, it supplies defense system to the United States government and space systems to NASA. The current forces of competition have made Boeing focus deeply on research and development to cater the need of consumers. In order to survive, Boeing reduces running costs by outsourcing production and maintaining access to foreign markets
Smith, Mercia. 'U.S. Space Programs: Civilian, Military, and Commercial'. Congressional Research Service 6, no. IB92011 (2015): 1-19.
Smith uses budgetary calculations to correlate the need of security and increasing economy. In 2007, NASA budget was $16.792 billion and the department of defense was $2.3 billion. There