The sales leader in airframe industry and one of America’s leading exporters, Boeing earned $5.1 billion from Boeing Commercial Airplane and $4.1 billion from other divisions-missiles, rockets, helicopters, space equipment, computers and electronics.
Strategy:
Variations: Boeing manufactured families of planes, creating several variations on the same base airframe concept. It required
• flexible designs,
• inherent growth potential
• modifications capability ( without need for wholesale revisions)
Manufacturing Benefits: Producing a common family of planes on a common assembly line accumulated experience and ensured that learning does not get lost. It led to far-earlier break-even points.
Facilities: Large centralized facilities were provided with sophisticated manufacturing systems and project management tools.
Expertise in global marketing
Technological leadership
Customer support
Production skills
As a consequence of such strategies, Boeing emerged as the industry’s low-cost producer.
In 1973, Boeing initiated a new airplane study, naming it the 7X7 (‘X’ stood for development model) to define and, if approved, to develop, Boeing’s next generation airplane.
Program Definition (From May, 1973 to December, 1977):
During this period, Boeing worked the puzzle of market, technology, and cost.
Market Assessment: Market segments were defined by range of travel- short(less than 1500 nautical miles), medium (1500-3000 nautical miles), and long (greater
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.
This was where Philip Condit stepped in. He had been an engineer with Boeing since 1965; and assisted in the design of the 707, 727, 737, 747, and 757. He understood how the company operated. One of the first things he changed was how the aircraft was to be physically designed. Previously, the engineers would design a wing on paper, build it out of wood or foam, and then add it to a mockup of the aircraft. The people designing the fuel tanks would then add in their
On July 28, 1935, the first porotype of the B-17 or also known as the B-299 took off from Boeing Field in south Seattle on its first ever test flight (Boeing “B-17”). Seattle Times reporter Richard Smith dubbed the new plane, with its many .30 caliber machine-guns, the “Flying Fortress,” (qtd.in Boeing). A name that Boeing quickly adopted and trademarked for the gigantic bomber (Boeing “B-17”). The U.S. Army Air Corps designated the plane as the B-17. Boeing created the plane in response to the Army’s request for a large, multi-engine bomber. The B-17 financed entirely by Boeing, went from the design board to flight tests in less than a year. In Boeings description of the B-17 was a low-wing monoplane that combined aerodynamic features
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
The Boeing Corporation is the world’s leading aerospace company and is the largest manufacturer of commercial jetliners as well as military aircrafts. Boeing has teams that manufacture missiles, satellites, defense systems, and communication systems. NASA turns to Boeing when they need something and Boeing operates the International Space Station. Boeing has a broad range of capabilities and skills, which is probably the reason they are the world’s leading aerospace company. With the Boeing headquarters in Chicago, more than 170,000 people in 70 different countries find themselves employed with the corporation and
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.
• High capital requirements to establish +huge set up+ large investments + economies of scale/scope: Boeing having advantage over Airbus in large commercial aircraft sector.
After a few number of mergers & acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen.
1. How would you describe Boeing’s approach to project management? What are its strengths and weaknesses?
Market Share Airbus will launch their new large, long distance plane A380 in 2006. This plane can be a dreadful competitive product to Boeing. If Boeing falls behind regarding innovations, fuel efficiency and other attributes of a long haul airliner, it will soon lose its market share. In order for Boeing to compete in the aviation industry, it is crucial to take on some risk and develop this new 7E7 project. This helps the company to fight against its competitors and recover from the slump in the industry.
1.) In early 2003, Boeing announced plans to design and sell an airliner named the 7E7. Boeing aimed for the 7E7 to be more fuel efficient, carry between 200 and 250 passengers, able to accomplish both domestic and international flights, as well as be 10% cheaper to operate than Airbus’s A330-200 aircraft. All of these attributes were attractive to Boeing but would come at significant costs. To accomplish these attributes, Boeing proposed to construct the aircraft
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.
The Boeing corporation had been a very successful company in the mid-1990s. At the time, it dominanted the market in commercial aviation with an additional thriving sideline in the military and space contracts market. Boeing faced and then overcame a huge number of challenges but also took advantage of many opportunities that were offered up by the aerospace market in the late 1990s. The company faced a number of challenges. In wake of he the first Gulf War, the incumbent economic slowdown severely decreased the market demand. Also, the Boeing encountered stiff competition from the company Airbus which many experts have attributed to heavy subsidies by European government that gave the company an unfair advantage market advantage. For instance, in 1999, Airbus outsold Boeing for the first time in the company's history and delivered to the market more airplanes than the Boeing company did in
2.1 Boeing Aircraft Corporation, with a heritage of aircraft design, manufacture and assembly, dates back to July 1916 (Boeing, 2004). Recent aircraft including 737, 747, 767, and 777 are all designed,
The Boeing Company's defense business has been growing steadily over the past few years. Revenues from the integrated defense system grew from $27,361 million in 2003 to $30,791 million in 2005. The defense business accounts for over 55% of the company's revenues. Continued strong performance of this division of the Boeing Company would counter any downturn in the commercial aircraft industry (DATAMONITOR).