Boeing's E-Enabled Advantage Essay

1929 WordsNov 24, 20128 Pages
Boeing’s e-Enabled Advantage Contents Executive Summary 3 Problem Statement 3 Internal SWOT 3 External SWOT 4 Michael Porter’s 5 Competitive Forces 5 Executive Summary Boeing is a world leader in the aerospace industry. At one point they were the highest seller’s commercial aviation with no competition in sight. That all changed, and soon Boeing had to change. Background Boeing was founded in 1916 by William Boeing. The company started by making small seaplanes with low top speeds. The first customer of Boeing was the New Zealand government. They used the planes for the countries mail, and to train pilots. The real pay-off was when the United States entered World War I and ordered a large amount of seaplanes. Between…show more content…
There is also a high level of barriers to entry. Before entering to the airline industry, a company will face high capital and operating cost. New entrants would need to invest tremendously as a substantial amount of money is needed to start up in the aerospace industry. Majority of the cost are operating cost like air service, fuel, labor, IT services and equipment, engines, spare parts, insurance, airport handling services, catering and training. Another problem to start up a new aerospace company is trying to market the new company and to create clientele with airline companies. If a company does enter to the airline industry, it is a long term project. Not all airlines are making profit and that is why many airline companies fail. 2. Power of Suppliers The probability of power of suppliers would be low-medium risk. The bargaining powers of suppliers are low due to the limited numbers in the industry. This gives Boeing a high degree of control over the suppliers. Since Boeing started as an engineering company, they provide suppliers with unique features to decorate the crafts and supply parts. But if Boeing needed certain parts from their suppliers, their bargaining power can decrease. Boeing can also lose more bargaining power if government created new laws on making planes more eco-friendly. This would cause Boeing to purchase new parts just to follow the new rules and regulation. 3. Power of

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