While Airbus’ A380 had been under the spotlight in the superjumbo market despite the uncertainty of who would have the last laugh – A380 or 747, Boeing was determined to grasp the mid-size wide-body market by introducing the 787 Dreamliner aircraft.
With new technologies and designs, the 787 could considerably reduce operation and maintenance cost and meanwhile, enhance fuel efficiency, greenness in carbon emissions, airlines’ revenue from cargo and passenger comfort. Considering these superior characteristics, the 787 Dreamliner would be able to address the threats to profitability from rivals, entrants, substitutes and buyers. As the only other manufacturer for wide-body aircraft, Airbus had no equivalent aircraft to compete with the 787. To other competitors such as Bombardier and Embraer, it was hard for them to enter the market in a short period of time because of the huge expenditures in development and manufacturing as well as Boeing’s reputation in aviation industry. Besides, seldom any product could totally substitute the aircraft, especially the one for long-haul routes. Therefore, based on the reasons mentioned plus the expected growing demand in the next 20 years for mid-size wide-body aircraft globally, buyer power would not be strong enough to bargain for a lower price.
However, the significant changes Boeing made to its supply chain in the 787’s production ruined the ideal plan. With over 60 percent of the production outsourced, Boeing relied heavily on more