Boeing Case Analysis

3635 Words Nov 23rd, 2012 15 Pages
Lincoln University
Graduate School of Business

Marketing Management Team Project

Case 3: Boeing Company

Team - 8
The five elements group: Derek Dellape : 7551

Synopsis 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
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Unfortunately, Boeing jets were involved in four fatal air accidents from December 1988 to March 1989, and the company missed its first delivery deadline in two decades when the 747-400 experienced production delays. These internal problems were exacerbated by increased competition from Airbus, which was heavily subsidized by a consortium of European companies and governments. Furthermore, worldwide orders of all aircraft by the airliners declined from 1,662 in 1989 to 439 in 1991. Fortunately, in 1993 NASA selected Boeing as the prime contractor for the International Space Station, which was called the largest international science and technology endeavor ever undertaken. Boeing was also becoming increasingly involved in commercial space projects and in December 1995 ten commercial space satellites were produced and launched from a floating platform at sea.
In the middle of 1990’s, Boeing began its plan of acquisitions and in 1996 it paid $3.2 billion for the aerospace and defense holdings of Rockwell International which was responsible for the Space shuttle and International Space Station programs, as well as activities in launch systems, rocket engines, missiles, satellites and military airplanes. Furthermore, in 1997 Boeing completed a $14 billion acquisition of McDonnell Douglas which was the world’s number three maker of commercial aircraft. The acquisition

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