Case Study Boeing

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.

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

Differentiation strategy is generally reserved for companies with a clear competitive advantage. Companies such as Mercedes and Apple employ this strategy. Differentiation strategy is demonstrated when a company provides value to customers through unique unique features and characteristics of a company's products rather than by the lowest price (Open Learning World 2010).

Boeing pursues Product Differentiation strategy in order to create competitive advantage over Airbus. Boeing differentiates its products by increasing number of seating capacity, engine capacity, innovating new winglet designs and by manufacturing wide range of products in respect to the change in market

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.

Differentiation strategies refer to the strategies that are adopted by businesses in a bid to gain competitive advantage in a given industry and over their competitors. Through differentiation, the company’s products or services stand out among other products that are offered by their competitors. Therefore, differentiation in essence refers to a scenario whereby, a company offers products or services which are unique or have features which are unique and which makes them stand out among its competitors. The airline industry is termed as an industry that experiences rapid and volatile changes amidst growing competition among many competitors in the globe. With this in mind, different airlines have to adopt different strategies that are to differentiate them among the many competing airlines in the world. This paper will focus on Southwest Airlines in the discussion of the differentiation strategies that it has adopted. Also, recommendations will be made will be done in reference to Southwest Airlines.

• No substitutes- High perceived level of technology and economies of scale ,easy substitutes difficult to find. Boeing being market leader because of Boeing 747 fuel efficient long range jets .Airbus having total power in Europe no easy substitute as government involvement and support.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

In 2000, Airbus Industrie’s Supervisory Board was making the biggest decision in the company history: whether Airbus should commit to develop world’s largest jumbo jet. At that time, there are only two major commercial jets manufactory companies: the younger Airbus and the bigger Boeing. Boeing had been at the forefront of civil aviation for over half century. Airbus was founded in 1970as a consortium and merged into a new company known as European Aeronautic Defense and Space Company. Airbus developed “fly-by-wire” technology and “cross crew qualification” technology to compete with Boeing in large jets (those with 70 or more seats) market. While Airbus was booked more than

Second, Airbus, McDonnell Douglas, and Boeing are multi-product firms that are selling several products during most time periods. When Boeing considers lowering a price of one of its products, this will not only reduce the market share of Airbus’s products, but it might also undercut the sales of Boeing’s other products. Boeing may then lower its prices by less than in a situation when it only sells one product.

Given the high-tech nature of the airplane industry, there are relatively few suppliers capable of providing parts to Airbus and Boeing. In contrast to Boeing, who relies heavily on suppliers, Airbus has tried to manufacture the

This is a case about three different companies dedicated to the manufacturing of aircrafts. Those three major companies are: Boeing, Airbus Industry and McDonnell Douglas; each of one was struggling to produce enough aircraft to satisfy a seemingly unquenchable need for passenger and freight transport around the world, developed in this form many kinds of aircrafts in different models and styles.

The main objective of Boeing's strategy is to analyze the commercial aircraft industry, to understand the demand that is present, and to formulate a solution that will fulfill that segment. Currently, there are only two major players in the global market: Boeing and Airbus. Boeing is widely known as the "free market" champion, while Airbus represents the "not-so-free" approach of the European Union's organized and government subsidized

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.

One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.