Strengths And Weaknesses Of 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.

Airbus was planning to introduce the A380 in direct competition to Boeing 747 to compete in the large aircraft sector. The rivalry between Airbus and Boeing was already intense. Boeing’s market share reduced from 70% in 1974 to 45% in 1990 while Airbus’s market share had increased from 1% to 34% during the same time (Exhibit 5). Encouraged by this increase in market share, Airbus was contemplating the introduction of A380. Development of new product line is extremely expensive in the Aircraft sector. Following is a quantitative analysis of the project to calculate the risks involved in introducing a new line of Aircrafts.

In its published Current Market Outlook (CMO), Boeing forecast a much smaller VLA market despite general agreement on overall growth with GMF. Boeing predicts the total market demand for VLA aircraft is 330 over the next 20 years. In addition, the most of the demand for the lager planes would not materialize for at least ten years. If the predicted market demand is true, there is no way for Airbus to reach the breakeven point. It is most likely Airbus will run out of the business if it commits build A3XX. In this case, Boeing could ignore the A3XX and concentrate on its existing product line. That is to say, Boeing had an opportunity to enhance profitability on its existing products while Airbus was tied up developing the A3XX.

Nevertheless, as Boeing gears up for its all-new 7E7 airliner, arch rival Airbus may already be putting 7E7 orders at risk by talking to airlines about a similar plane. Airbus is viewed a having advanced technologies coupled with a conglomerate backing and Boeing has not come up with any new innovative ideas in the last ten

The Boeing Company (NYSE:BA) shares have been on momentum over the last two months, thanks to its strong financial performances and solid net order lead this year. Boeing reported 566 gross orders and 457 net orders in the last ten months this year, beating Airbus Net orders of 395 aircraft.

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

THE BOEING COMPANY: STRATEGIC AUDIT I. CURRENT SITUATION A. Current Performance Boeing performance has been outstanding for the past few years. Their Return on investment rose from three percent to 6 percent from 1998 to 1999, but it did drop to five percent in 2000. In 1996 Airbus claimed 42% of the market share, while Boeing had 64%. Boeing is looking at falling below the 50% mark. Boeing's profits have been doing quite well. They have risen drastically in the past few years, which can be seen in the profitability ratios. Boeing is doing fine when it comes to profitability, even though they have dropped slightly since 1999.

Boeing Company has been and is still at the forefront of the aviation industry. The late 1990s were a time of trial and transition where the company encountered and overcame a number of

A few of their major competitors are: Lockheed Martin, Honeywell, General Dynamics, Raytheon, Embraer and Rockwell Collins. Following the merger with McDonnell Douglas, Lockheed Martin could not keep up in the commercial airlines industry and now only manufactures military aircraft. Lockheed is now their largest competitor for government contracts.

5. Boeing VS Airbus 5faster cross-country flight service. During this period, Boeing launched Boeing 707 whileDouglas manufactured its DC models, DC-8 being the latest model in that decade .11Insubsequent years, Boeing and Douglas competed profoundly to vend their planes byproposing conventional deviations of a basic design that would serve airlines’ particularneeds such as big wings for long variety. These

division, Boeing Integrated Defence Systems. Boeing is the world largest aircraft manufacturer and the third largest aerospace and defence corporation by revenue. Boeing is the biggest exporter by value in the United States. This company is engaged in a trade war with its main competitor, the European consortium Airbus. Boeing Products Boeing’s products include commercial and military aircraft such as: the 737, 747 (which was the largest passenger plane until the Airbus A380), 767 and 777 families of airplanes and the Boeing Business Jet; the F/A-18 Hornet used by the United States Navy. Furthermore the products range is big, from services that contain weapons, electronic and defence systems, satellites, advanced information and communication systems, launch systems, and

Government: which is the primary corporate stakeholder and the final arbiter of what corporations must do and Boeing is aware of their necessities. Because government is constantly changing and no government last forever, Boeing is entailed to complete all government ordinances such as taxes, employment law, international relationship, quality on their military instruments etc.

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.

“Boeing is the world’s largest aerospace company and leading manufacturer of commercial airplanes, Defense, Space, and Security systems” (Boeing company annual report) Boeing’s extensive network reaches across one hundred and fifty countries. Boeing’s services include commercial airlines, Defense, Space Securities, Innovation Technologies, Capital Corporation, and shared services group. This juggernaut employees over 160,000 employees across the United States and in more than 65 countries. “At Boeing, we aspire to be the strongest, best and best-integrated aerospace-based company in the world—for today and tomorrow.” (Boeing company annual report) Boeings legacy started 99 years ago and was founded by Bill Boeing. Bill had a passion for the emerging science of flight and had an innovative belief that he could build the best airplanes. Boeings U.S. impact is pretty impressive, in the 2015-16 fiscal year to date they have employed 148,750 people in the States alone. In comparing supplier related job across the United States, in the past year Boeing paid $50 billion dollars more to their employees did than their competitors did. “The Boeing Vision is People working together as a global enterprise for aerospace industry leadership” (boeing.com) the way they choose to implement and execute this is to operate as one cohesive unit, they value customer satisfaction, their innovation and creativity paves the way for endless possibilities in their field, they have detailed customer

As of November 28th, 2017 Boeing Commercial Airplanes has a net order of 662 aircrafts, 505 of those are the popular 737 jetliner. Aircraft range in price from about 82 million up to 400 million each. (About Boeing, 2017) Furthermore, Boeing has announced that the 737-800 model will be increasing rate from 47 airplanes produced each month to 52 airplanes in 2018. Safety, quality, and continuous improvement projects are all incredibly important to making this new rate. (Renton, 2017)