The purpose of this report is to analyse the problems and issues faced by the Boeing company over history and provide a strategic plan for its future growth and development.
At first this report gives an introduction on the background and the current situation of Boeing. Then it conducts a series of analysis on the factors that might influence the development of the company, they include: SWOT analysis to discover the company’s internal strengths and weaknesses together with its external opportunities and threats; Industry and competitive analysis which by applying Porter’s five forces illustrates the competitive environment in the aviation industry and the situation Boeing is in; Company analysis- by analysing In order to get more market share and to compete with Boeing’s 777, Airbus plans to develop their own long range aircrafts which are more fuel-efficient and with the advanced high technological design such as a newer flight management system and liquid crystal displays (Velocci Jr. 2000). However, it takes time and money to develop a new airplane. For example, Airbus started to design their A380 in 1994 and the first airplane is only expected to be delivered to customers in 2006 (Mango 2006). This model will cost the company $10.7 billion to develop (Reinhardt, Rossant & Balfour 2000). Therefore, during the coming years, Boeing should be able to enjoy the competitive position of their 777 aircrafts, but a good marketing strategy should be implemented to further increase the sales.
2.1.2 Profitable order at hand:
McDonnell Douglas held the second largest contract from the US Defence Department which amounted to $22.5 billion. This contract automatically fell in Boeing’s hands when they merged McDonnell Douglas in 1997. The production of this contract had started in the same year and is expected to continue till 2010 (Boeing 1997; ‘Fortune’ 1997, cited in Hill, Jones & Galvin 2004). Since the military aircrafts are much more profitable than commercial aircrafts for Boeing, this contract is going to bring the company
Boeing [pic] Presented by: Urvishkumar Patel Amitkumar Patel Bhavikkumar Patel Manojkumar Patel Vishal Patel Jonathan Mayes MG - 640 Management Policy Dr. Santanu Borah July 27, 2008 TABLE OF CONTENTS INTRODUCTION 5 Company Overview 5 Boeing Commercial Airplanes 5 Boeing Integrated Defense Systems 6 Boeing Capital Corporation 6 Background 7 Sales/Operations 9 Constituent Contributions to Corporate Portfolio and Revenue 12 Market Share, Revenues…
Prepared for: Professor Nicolas Kuzm Topic Paper 3: Boeing Aircraft Company vs. Airbus Managerial Economics Fall 1, 2012 Section OB September 2, 2012 Introduction: For decades, Boeing and Airbus have struggled for dominance in the large commercial aircraft market. In 2010 and 2011, the World Trade Organization ruled that each firm has received illegal subsidies from the governments of the United States and the European Union, which have enhanced their competitive positions…
Fair Value Measurement Analysis for the Boeing Company The 2013 annual report of the Boeing Company contains a disclosure about fair value measurement using the fair value hierarchy. There are three levels of inputs in the fair value hierarchy, with Level 1 representing the highest priority and Level 3 representing the lowest. The fair value of the assets or liabilities, estimated based on the quoted prices for identical assets or liabilities in an active market – the most reliable input, are categorized…
it is very import to have a product innovation approach which can drive the organization towards their market goals. Innovation strategy of a company is highly depending on its current market position. Therefore before move into Boeing Company product innovation approach, I think it is better to familiarize with Boeing current position. To assess the Boeing current position in the marketplace and to analyze its external environment I used Porter’s Five-Force Model. According to Porter’s five force…
point of view in light of the evidence. In 1999, both of the companies Boeing and McDonnell Douglas decided to merge to increase profits against competition. Both companies were well known for producing military aircraft; however Boeing wanted to merge with McDonnell Douglas to increase profits. By issuing shares of their own stock to McDonnell Douglas, this allowed Boeing to pay for the merging of the two. Following the contract, Boeing had a requirement it had to uphold. The requirement was that…
Boeing Financial Analysis The Boeing Company was formed in 1916 by William E. Boeing in Seattle, Washington. The following year they had a twenty eight person payroll which included pilots, carpenters, boat builders and seamstresses. The lowest wage was fourteen cents an hour, while the company's top pilots made two to three hundred dollars a month. When the company was short on money, William Boeing used his own financial resources to guarantee a loan to cover all wages, which was a total of about…
1. Boeing The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets and satellites. It also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers, is the second-largest defense contractor in the world based on 2013 revenue, and is the largest exporter in the United States by dollar value. Boeing stock is a component of the Dow Jones Industrial Average. The Boeing Company is an…
Winston Tabora BUS ADMN 105 9/24/14 BOEING The Boeing Company is an American multinational corporation that designs, manufactures, and sells fixed-wing aircraft, rockets and satellites. The company is currently ranked 30 in the Fortune 500 list. William E. Boeing, founded the corporation in July 15, 1916 in Washington, Seattle. It was originally a called Heath’s Shipyard. From that time to present day, the company has evolved into a giant airplane manufacturer enterprise across the globe. The…
three reports I will complete as part of the strategic analysis of Boeing. This report will illustrate three primary sections of a strategic nalysis. The major concepts will be defined, and then applied to Boeing in order to fully consider its competitive advantage standpoint in the airplane crafting industry. An analysis of Boeing will be given in addition to an evaluation to determine a probable solution to a problem the company is facing. 2. Concepts Several strategic tools are used to determine…
