Distinctive competency and competitive analysis
Distinctive competencies are organization’s specific strengths which allow the company to differentiate its products from those products which are offered by rivals (Hill, et.all,2017, p.81). Boeing strength lies on customizing of aircraft and designing and proactively in meeting customer demands and needs. To compete in market Boeing developed action which covers enhancing in efficiency, quality, innovation and customer responsiveness. The development process deals with improving the speed of R&D. global sourcing of Boeing aims to achieve greater economies of scale. core competency of Boeing commercial aircraft is based on its product innovation strategy. Boeing is forecasting the market after
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government laws, regulations and policies can have significant impact on company. Boeing has deep relationship and agreement with U.S government. And European government’s regulations can be main driving force for the purchase of new aircraft in future. There may be high level of political intervention which can have impact on sales of aircraft. the situation of country’s economy is major factor that affects operation of Boeing. Economic factors such as; interest rate inflation rate and currency exchange rate, positively affect the purchasing power of potential customer. in addition, financial crisis and economic recession have forced people to reduce their spending on travel. this may lead reduction in aircraft order. similarly, fluctuation in fuel prices and higher security cost and insurance cost may positively impact on company. as a company is operating in multinational environment Boeing needs to consider social factor which may affect demand and sale of aircraft. likewise, changing needs and wants of consumer with increasing population. analyzing technological factor in the manufacturing of Boeing aircraft usage of more carbon composites and equipment (light weight material) will make aircraft more fuel efficiency and weight less which enable the aircraft to fly longer distance (Hill, et.all,2017, pp.C-52). using hi tech
Boeing’s faces these marketing risks. The marketing manager brought it to the airlines, who reviewed, among other things, its flight characteristics, range, cursing speed, interior, systems and operating costs the feedback to designers the airplanes to meet the best the requirements of customers is a difficult process. Airline bit difficult to design. Therefore, the configuration changes constantly.
In 1916, the Boeing Company (Boeing), was founded in Seattle Washington. Boeing is one of the world’s biggest manufacturers in producing military and commercial aircraft carriers. Throughout Boeing’s history, the company has developed several strategic alliances with various aerospace companies. Further, the company has merged and acquired numerous international aerospace firms such as McDonnell Douglas, Rockwell International, Jappesen Aerospace, Hughes Space and Communications, and North American Aviation (Boeing, 2014). Boeing is currently conducting business operations in approximately seventy (70) countries and approximately 200,000 employees. Further, there are approximately 25,000 suppliers within the company’s supply chain. In addition, the company has a very intricate value chain as seen in Table 1 below.
Airbus was planning to introduce the A380 in direct competition to Boeing 747 to compete in the large aircraft sector. The rivalry between Airbus and Boeing was already intense. Boeing’s market share reduced from 70% in 1974 to 45% in 1990 while Airbus’s market share had increased from 1% to 34% during the same time (Exhibit 5). Encouraged by this increase in market share, Airbus was contemplating the introduction of A380. Development of new product line is extremely expensive in the Aircraft sector. Following is a quantitative analysis of the project to calculate the risks involved in introducing a new line of Aircrafts.
Due to customers’ needs and requests, Boeing has expanded its product line and services. The long tradition of aerospace leadership and innovation has given the company the advantages. Its broad range of capabilities includes creating new and more efficient commercial airplane, integrating military platforms and defense systems through
Boeing’s management plan shows determination to improve through creation of new more members of their airplane family (commercial airplanes). This would also be achieved through integration of military platforms, systems for defense and the war fighter by use of network-centric activities. Boeing plan is also inclusive of creation of improved technology to solve problems across all business units. Boeing plans to e-enable airplanes where automation is the key to this development. Finally, Boeing is determined to arrange for financing solutions to its customers. Through this it will be able to attract more potential customers. Moreover, it can also be able to establish a better relationship with its customers through provision of incentives and sales promotion.
Boeing Company has been and is still at the forefront of the aviation industry. The late 1990s were a time of trial and transition where the company encountered and overcame a number of
There are a multitude of aerospace manufactures in the business of building airplanes worldwide such as Boeing and Lockheed Martin. In order to become a global leader in an ultra-competitive market, such as the aerospace industry, Boeing implements cost reducing initiatives such as lean manufacturing practices. In order to build a complex item such as an airplane on time and on budget, a manufacture will require a competent supply chain management system to ensure all the needed parts are available to the builders. Implementing technology such as automated equipment to assist in the reduction of human errors and fatigue will reduces costs associated with rework caused by human error mistakes.
Air travel has drastically changed the way of life for many individuals that depend on air travel to take care of business. One of the top leaders in the air travel industry, The Boeing Company realizes in order to stay competitive in their chosen industry, an effective strategic plan should be implemented. There are several approaches that can be utilized, such as focusing on the external and internal objectives that could beneficial. Boeing strives to be the best aerospace-based manufacture in the world.
• Learning curve has to be steep, i.e. Cost reduction has to be fast with change in technology
to meet its customers’ needs worldwide. Boeing is diversified as it consults operations all over
This business level strategy allows Boeing to create distinctive competencies from its rival, Airbus and gain an edge over them. Boeing has been successful in maintaining this business model due to its high R&D which has led to some great innovations in aircraft manufacturing such as the production of Advanced Winglet, Digital Airline, Performance Based Navigation System to name a few. Boeing has also prioritized customer service in their corporate strategies and have implemented GoldCare IT Enterprise Suite as means of 24/7 customer service regarding operations along with AOG solutions as means of after sales service to the customers. As mentioned Boeing Dreamliner 787 has been created keeping in mind the customers’ psychological desires in mind which sets Boeing apart. Boeing has been very successful over the years to create their competitive advantage and maintain its superior performance and they continue to do
As the largest aerospace company in the world, the Boeing Company employees more than 153,000 people in some 67 countries. The great dominance of Boeing is due to its 1997 merger with McDonnell Douglas Corporation, an aerospace manufacturer, and its 1996 purchase of the defense and space units of Rockwell International Corporation, an aerospace contractor. The corporation is the world’s number one maker of commercial jetliners and military aircraft with more than 9,000 commercial planes in service worldwide, including the 717 through 777 families of jets
Barilla is operating in a very old-fashioned distribution system that needs to be changed. Implementing this new JITD will increase efficiency across the supply chain. The system will reduce manufacturing costs, increase supply chain visibility, increase distributors’ dependence on Barilla, establish better relationship with distributors, reduce inventory level and most importantly improve manufacturing planning and forecasting using objective data. This JITD will see Barilla’s supply chain synchronized from manufacturing to end - users.
The Boeing Company designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products.
This report discussed the components of internal analysis, competitive advantage, and strategic competitiveness of Boeing Company. This is done by analyzing the tangible & intangible resources, capabilities, and core competencies in order to clarify Boeing’s strengths and weaknesses.