Boeing Dreamline Case Study Report

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Boeing Dreamline Case Study Report By Jiajun Chen INTRODUCTION On April 26, 2004, as Airbus surpassed its market share for the first time in the history, Boeing announced its plans to develop the Dreamliner 787 (initially known as Boeing 7E7). These plans were meant to recapture its leading position in the commercial aircraft market. With this aircraft, Boeing used a different approach for development. This report introduces the market position of the 787, addresses its new development strategy and its possible outcomes, and provides recommendations to the project regarding challenges and the competitors Boeing faces. Market Position The Boeing 787 is positioned within the market with a high likelihood of success. As crude oil prices have risen over the past few years and likely to remain high in the future, the 787 can reduce the airline’s operation cost by consuming 20% less fuel than other airplanes of comparable size. On top of the non-corroding composite fuselages, sensors were embed into the main structure to capture real-time data on plane’s structure. With both features, the airlines benefit from reduced maintenance cost and increased airplane life span. The Boeing 787 also has a larger cargo capacity to allow for additional space, providing additional revenue from potential customers. Because of the booming cargo market, adding additional cargo space was a necessity for more of a stable revenue stream. Besides the airline companies, more financiers and leasing

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