Boeing Case Summary

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In assessing the current situation for the Boeing 747-8, there are many things that we need to look at. There is a passenger version and a freight version of the aircraft and this analysis will mainly focus on the passenger plane. We will first look at the current performance, which is going to show us some concerns we can address at a later time. Next we will look at the overall market demand and the specific decreased demand for this product. No analysis would be complete without looking at the competition and the planes that are more likely to be direct competition for the 747-8. Lastly, we will look at the customer needs, and how Boeing may create a competitive position and increase value for their customers and themselves in the future. Boeing is the world cargo market leader but prospects for this cargo market segment are slowing. However, the freight aircraft is still producing better results than the passenger aircraft. The first thing we notice when looking at the current performance of the 747-8 is that the orders for this plane are not as expected. Boeing would need to sell nearly 40 more of these planes over the backlog of orders to remotely get near profits given the heavy costs. Production has even decreased due to this and without more orders, there is less than three years of production left on this plane. Boeing is currently producing at a rate of 16 planes per year. As of the middle of December, there were no new orders for 2014 as 2 orders previously
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