Boeing: Selling a Dreamliner Essay

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.

I am the Project Manager developing the Boeing 787 Dreamliner. The development of this state-of-the-art airplane will include an international team of aerospace companies led by Boeing. The advances in this airplane will reduce the use of fuel by 20%, increase cargo capacity, increase nautical miles in a mid-range airplane, and improve passenger comfort. Boeing

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

Many consider Boeing’s 787 Dreamliner an example of a failed project. Twenty-six billion dollars over budget, almost four years late, and several quality issues surround the innovative new aircraft (Ausick 2014). This paper explores Boeing’s approach of materializing the Dreamliner from a project management perspective by comparing the company’s undertakings with project management principles.

Goals in the company are to find the right product for the customer’s particular needs and build a relationship with the customers

In the technological risk was that is the customers were involved in design and development of the Boeing 767, they would gain from much greater involution and feedback from users of the aircraft. In the very new airplanes they are first to tested then to implement the designed. These tested approved the safety test in the laboratories and too much used of computer they are useful in techniques. For the last project they learnt many of lessons which are not used in the 767 product airline. This airline is much better than the competition promotes.

Boeing’s target market is different in that they are selling to companies rather than individuals. The target market is determined through a combination of geographic and demographic segmentation. The two target markets are commercial airline companies and the US government and its allies. These markets directly coincide with the company’s two business units: Commercial Airplanes and Defense, Space, & Security (Boeing, 2016).

Boeing adopts a very thorough, well planned out process to manage the project. The stages are defined clearly and tasks involved in each stage are carried out sequentially. The first stage of their approach is the project definition phase during which Boeing identified holes in the market not met by existing planes, assessed future airline needs, considered alternative plane configurations, explored feasibility of possible technologies and performed preliminary estimation of costs. During the market assessment, analysts gathered information regarding future needs of airlines by speaking directly to

When customers seek for a specific product or service, they obviously want the company to be responsible and well organized. A customer wants to be able to trust the company in which the company delivers everything correctly and the way the costumer wants. When all the customer wants and needs are met, the customer will be to determine which company fits best.

It is suggested that the travel industry and the aerospace and defense industry as a whole will continue to grow on the basis of the strong demand emanating from domestic demand as well as globalization. This may give a major boost to the demand for 7E7s as the airlines are already concerned about high fuel costs intensifying out of increased demands from emerging economies like India and China and reduced production. Better design modifications is going to be a major strength for the 7E7 as Boeing is betting on the future of small-mid size airplanes which can fly short as well as long distances with its fuel efficient engines. From an investment perspective, with interest rates at it's lowest in decades, with 911 behind us, and barring a major pandemic such as SARS, the timing seems right for Boeing to pursue this endeavor.

Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant

Boeing adopted the radical change approach for designing and developing the 787 Dreamliner not only to attempt to create new aircraft through the innovative design and advanced material, but it also drastically changed the production process. With a $10 billion dollar project in mind, the goal was to reduce the financial risks involved as well as the new product development cycle time. Meanwhile, Boeing produced a remarkably complicated supply chain that included greater than fifty partners in over 100 locations all across the globe. In addition to the complicated supply chain, they experimented with various firms in diverse areas to align complementary skill sets. Furthermore, this was the first time the company outsourced the two most crucial parts of the plane, the wings and the fuselage.

With the company being in the public eye at all times the planners must determine where, when, and how the product will be used before they begin building, testing, and using the new technologies. Since Boeing has become such a large company it has had to continuously evaluating the way it does things to make sure that they are doing the right thing.

BA’s product in essence relates to the flights offered. However, the product can be drilled down into specific areas ranging from the airport lounges around the world, the ‘extras’ that you can buy on board such as model BA aeroplanes or even package holidays. Each of these has been specifically tailored to meet customer expectations (which are highlighted in the section of the report titled ‘target market’). This part of the marketing mix focuses on how BA’s products are managed and in the Guardian case study article titled ‘BA, Iberia and American Airlines tie-up heralds new era of transatlantic travel’ dated 06/10/2010 it shows how BA have made an executive decision to link their websites with other companies to have the possibility to offer a higher number of routes (products) to their potential customers.

The B707 was the first aircraft developed by Boeing in 1958, it is a narrow body , mid-size and a four turbo-fan engine aircraft ( Pratt & Whitney ) . Some people call it ( seven oh seven ) and it has different modules ( series ) that contains different capacity from 140-189 passengers .The Boeing 787 was produced in 2007 , it is a long-range , wide-body , twin turbo-fan engine ( GEnx or Rolls Royce ) aircraft . Passenger’s seat varies from 242-335 dependant on the series of the aircraft. Of course both aircrafts varies from the internal structures ,but almost the same design for the outer structure (body shape ) , and I’ll demonstrate the differences and similarities between both aircrafts , from structure design to the innovations made to the B787 , that surely made us look at the Boeing industry in a different perspectives.