A study between Boeing and the airline industry

Essay by Anand NallaUniversity, Master'sB, November 2007

download word file, 11 pages 0.0

Operation Strategies

Empirical Study: BOEING

Submitted By:

Mithu Saha

Yao Yu Wen

Jonathan Staley

Ping Liang

MBA 2008


Boeing: Company, Product, Customer

Boeing was founded in 1916 in Washington where it operates as the leading producer of commercial and military aircraft. In recent times, Boeing has undertaken a series of strategic mergers and acquisitions to broaden its portfolio to include McDonnell Douglas, Rockwell Intl. Spaces, and Defense and Hughes Space and Communications. Boeing positions itself as a broad, balanced and global enterprise defining the future of aerospace. Currently, Boeing is involved in many areas of business; however, we will only be concentrating on the operations of its commercial aircraft segment.

Boeing offers a broad range of services to its passenger and freight carriers with it 7-series commercial jetliners. Boeing has created planes that meet the needs of a diverse range of customers - with various size and distance requirements.

Through innovation and new technology, Boeing is able to deliver its critical customer lower manufacturing cost and better quality of aircrafts with more comfortable interiors and fuel saving solutions.

However, because Boeings customers are in a market that is driven by an elastic demand curve, revenues are affected with business cycles, consumer confidence, and exogenous events. Therefore, it is very difficult for Boeing to correctly forecast the IRR and ROI of its projects making it a pain staking process on where it needs to invest its money. There is some hope because the long-term cycles should smooth out and GDP, international trade, lower fare, and network service improvements should become paramount. As a result of these factors, Boeing defines its critical customer through its new products and supply chain strategy. The three areas of focus for Boeing success is detailed customer knowledge and focus, large-scale systems integration, and operating...