BCG Matrix
The BCG matrix is a strategic management tool that was created by the Boston Consulting Group, which helps in
analysing the position of a strategic business unit and the potential it has to offer. The matrix consists of 4
classifications that are based on two dimensions. These first of these dimensions is the industry or market
growth. The other of these dimensions is the relative market share of the strategic business unit. Strategic
business units are placed in one of these 4 classifications. The BCG matrix for Boeing will help decide on the
strategies that can be implemented for its strategic business units.
Strategic business units with high market growth rate and high relative market share are called stars. Businesses
should invest in their stars and can implement vertical integration, market penetration, product development,
market development, and horizontal integration strategies. Strategic business units with high market growth rate
and low relative market share are called question marks. These strategic business units require close
considerations whether the business should continue with them or divest. Strategic business units with low
market growth rate but with high relative market share are called cash cows. The business should invest in
these to maintain their relative market share. Lastly, the strategic business units with low market growth rate and
low relative market share are called dogs. The business should divest these strategic business units.
BCG Matrix of Boeing
The BCG Matrix for Boeing will help Boeing in implementing the business level strategies for its business units.
The analysis will first identify where the strategic business units of Boeing fall within the BCG Matrix for Boeing.
Stars
The financial services strategic business unit is a star in the BCG matrix of Boeing. It operates in a
market that shows potential in the future. Boeing earns a significant amount of its income from this SBU.
Boeing should vertically integrate by acquiring other firms in the supply chain. This will help it in earning more
profits as this Strategic business unit has potential.
The Number 1 brand Strategic business unit is a star in the BCG matrix of Boeing, and this is also the
product that generates the greatest sales amongst its product portfolio. The potential within this market is also
high as consumers are demanding this and similar types of products. Boeing should undergo a product
development strategy for this SBU, where it develops innovative features on this product through research
and development. This will help Boeing by attracting more customers and increases its sales.
The Number 2 brand Strategic business unit is a star in the BCG matrix of Boeing as Boeing has a 20%
market share in this category. It also the market leader in this category. The overall category is expected to
grow at 5% in the next 5 years, which shows that the market growth rate is expected to remain high. Boeing
should use its current products to penetrate the market. This could be done by improving its distributions that
will help in reaching out to untapped areas. This will help increase the sales of Boeing.
Cash Cows
The supplier management service strategic business unit is a cash cow in the BCG matrix of Boeing.
This has been in operation for over decades and has earned Boeing a significant amount in revenue. The
market share for Boeing is high, but the overall market is declining as companies manage their supplier
themselves rather than outsourcing it. The recommended strategy for Boeing is to stop further investment in
this business and keep operating this strategic business unit as long as its profitable.
The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Boeing. This is an
innovative product that has a market share of 25% in its category. Boeing is also the market leader in this
category. The overall category has been declining slowly in the past few years. Boeing has the power to
influence the market as well in this category. It should, therefore, invest in research and development so that
the brand could be innovated. This will help the category grow and will turn this cash cow into a star. The
overall benefit would be an increase in sales of Boeing.
The international food strategic business unit is a cash cow in the BCG matrix for Boeing. This business
unit has a high market share of 30% within its category, but people are now inclined less towards international
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food. This change in trends has led to a decline in the growth rate of the market. The recommended strategy
for Boeing is to invest enough to keep this strategic business unit under operations. If it no longer remains
profitable and turns into a dog, then Boeing should divest this strategic business unit.
Question Marks
The local foods strategic business unit is a question mark in the BCG matrix for Boeing. The recent
trends within the market show that consumers are focusing more towards local foods. Therefore, this market
is showing a high market growth rate. However, Boeing has a low market share in this segment. The
recommended strategy for Boeing is to invest in research and development to come up with innovative
features. This product development strategy will ensure that this strategic business unit turns into a cash cow
and brings profits for the company in the future.
The Number 4 brand strategic business unit is a question mark in the BCG matrix for Boeing. This
strategic business unit is a part of a market that is rapidly growing. However, this strategic business unit has
been incurring losses in the past few years. It has also failed in the attempts made at innovation by research
and development teams. The recommended strategy for Boeing is to divest and prevent any future losses
from occurring.
The confectionery strategic business unit is a question mark in the BCG matrix for Boeing. The
confectionery market is an attractive market that is growing over the years. However, Boeing has a low
market share in this attractive market. The low sales are as a result of low reach and poor distribution of
Boeing in this segment. The recommended strategy for Boeing is to undergo market penetration, where it
pushes to make its product present on more outlets. This will ensure increased sales for Boeing and convert
this strategic business unit into a cash cow.
Dogs
The plastic bags strategic business unit is a dog in the BCG matrix of Boeing. This strategic business
unit has been in the loss for the last 5 years. It also operates in a market that is declining due to greater
environmental concerns. The recommended strategy for Boeing is to divest this strategic business unit and
minimise its losses.
The Number 5 brand strategic business unit is a dog in the BCG matrix for Boeing. This is operating in a
market segment that is declining in the past 5 years. The company also has negative profits for this strategic
business unit. However, it is expected that the market will grow in the future with environmental changes that
are occurring. The recommended strategy for Boeing is to invest in the business enough to convert into a
cash cow. This will ensure profits for Boeing if the market starts growing again in the future.
The synthetic fibre products strategic business unit is a dog in the BCG matrix of Boeing. The market for
such products has been declining, and as a result of this decline, Boeing has been facing a loss in the past 3
years. The market share for it is also less than 5%. The recommended strategy for Boeing is to divest this
strategic business unit to minimise any further losses.
The artificially flavoured products strategic business unit is a dog in the BCG matrix for Boeing. These
products were launched recently, with the prediction that this segment would grow. However, with increasing
health consciousness, people are now refraining from consumption of artificial flavours. The market is
shrinking, and Boeing has no significant market share. The recommended strategy for Boeing is to call back
this product.
Some of the strategic business units identified in the BCG matrix for Boeing have the potential of changing from
their current classification. For example, a dog changing to a cash cow. These have been identified in the BCG
matrix of Boeing and recommended strategies to ensure such change have also been made.
VRIO Framework
The VRIO Framework or VRIO analysis is a strategic management tool that is used to analyse a firm’s internal
strengths and resources. It helps identify which one of its internal strengths and resources can be a source of
sustained competitive advantage. The analysis is based on the idea that a firm’s internal resources are a source
of sustained competitive advantage if they are valuable, rare, cannot be imitated by competition, and are
organised to capture value for the organisation. The VRIO analysis requires looking at a firm's resources based
on these 4 factors.
Based on the analysis, each resource can either provide a sustained competitive advantage, has a good
competitive advantage, temporary competitive advantage, competitive parity or competitive disadvantage. A
sustained competitive advantage exists when a resource is valuable, rare, non-imitable and organised. A good
competitive advantage occurs if it is valuable, rare, and non-imitable. A temporary competitive advantage exists if
it is valuable and rare. A competitive parity occurs if it is only valuable. Lastly, the resource is a competitive
disadvantage if it is neither of the 4. The analysis takes place in this order by first assessing whether a resource
is valuable, rare, imitable and organised.
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Marketing Strategy of Boeing – Boeing Marketing Strategy
The aerospace & leading manufacturer Boeing is the world’s largest aerospace company and leading commercial
jetliners & defence, space and security systems manufacturer. The company operates & supports airlines in more
than 150 countries globally by providing tailored made services & products such as advanced information and
communication systems, commercial and military aircraft, launch systems, satellites, weapons, electronic and
defence systems, and performance-based logistics and training.
Segmentation, targeting, positioning in the Marketing strategy of Boeing –
Segmentations variables are used to identify the differentiated characteristics of the population and group them
accordingly. Boeing uses a mix of demographic and geographic strategies in order to cater to the customers of
different nations.
Based on the customer groups of Boeing selective targeting strategy is used as a different set of offerings like
fighter jet planes, commercial planes, and private planes are meant for a different set of customers.
User benefit based positioning strategy is used by the company to highlight the differentiated benefits of the
offerings in terms of IT-enabled advanced features.
Marketing Strategy of Boeing – Boeing Marketing Strategy
The aerospace & leading manufacturer Boeing is the world’s largest aerospace company and leading commercial
jetliners & defence, space and security systems manufacturer. The company operates & supports airlines in more
than 150 countries globally by providing tailored made services & products such as advanced information and
communication systems, commercial and military aircraft, launch systems, satellites, weapons, electronic and
defence systems, and performance-based logistics and training.
Table of Contents
Segmentation, targeting, positioning in the Marketing strategy of Boeing –
Segmentations variables are used to identify the differentiated characteristics of the population and group them
accordingly. Boeing uses a mix of demographic and geographic strategies in order to cater to the customers of
different nations.
Based on the customer groups of Boeing selective targeting strategy is used as a different set of offerings like
fighter jet planes, commercial planes, and private planes are meant for a different set of customers.
User benefit based positioning strategy is used by the company to highlight the differentiated benefits of the
offerings in terms of IT-enabled advanced features.
Marketing mix
SWOT analysis
Mission- “To Connect, Protect, Explore and Inspire the World through Aerospace Innovation”
Marketing Strategy of Boeing – Boeing Marketing Strategy
The aerospace & leading manufacturer Boeing is the world’s largest aerospace company and leading commercial
jetliners & defence, space and security systems manufacturer. The company operates & supports airlines in more
than 150 countries globally by providing tailored made services & products such as advanced information and
communication systems, commercial and military aircraft, launch systems, satellites, weapons, electronic and
defence systems, and performance-based logistics and training.
Table of Contents
Segmentation, targeting, positioning in the Marketing strategy of Boeing –
Segmentations variables are used to identify the differentiated characteristics of the population and group them
accordingly. Boeing uses a mix of demographic and geographic strategies in order to cater to the customers of
different nations.
Based on the customer groups of Boeing selective targeting strategy is used as a different set of offerings like
fighter jet planes, commercial planes, and private planes are meant for a different set of customers.
User benefit based positioning strategy is used by the company to highlight the differentiated benefits of the
offerings in terms of IT-enabled advanced features.
Marketing mix
SWOT analysis
Mission- “To Connect, Protect, Explore and Inspire the World through Aerospace Innovation”
Vision- “To be best in Aerospace and Enduring Global Industrial Champion”
Tagline-“Creating Breakthroughs, Expanding Opportunities”
Competitive advantage in the Marketing strategy of Boeing –
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A wide range of products and services for different customer groups: Its wide range of products for Long
Haul/ short haul, domestic as well international routes, satellite network services, Fighter jet planes Boeing, fifth
country freedom rights are some of the factors helping the company in being way ahead of its competitors.
Operating in Critical Businesses supporting the mainline businesses: Extensive presence in Commercial,
security & defense and also in Capital services for supporting & financing the customer purchases as well as
leasing requirements make the business model of Boeing more viable & competitive.
BCG Matrix in the Marketing strategy of Boeing –
The business segments of Boeing are divided into three categories Commercial Airplanes; Defence, Space & Security (BDS)
business comprising three sub-segments:
Boeing Military Aircraft (BMA)
Network & Space Systems (N & SS)
Global Services & Support (GS & S)
and Boeing Capital (BCC).
The segments in which it operates into are stars in the BCG matrix.
Distribution strategy in the Marketing strategy of Boeing –
The Company supports airlines and government offices through products & MTO (make to order) products such
asweapons, electronic and defense systems, commercial and military aircraft, launch systems, advanced
information and communication systems, and satellites.
It employees more than 14, 0000 in more than 65 countries who help the company in operating in business
segments Space & Security, Commercial Airplanes, Defence, and Boeing Global Services.
Brand equity in the Marketing strategy of Boeing –
Boeing has been ranked 73rd in Forbes magazine list of Top regarded companies (as of May 2017) while it has
been ranked 24 in fortune 500 list (June 2017) and it is ranked 30 th in the list of Fortune World’s most admired
company. The brand has been valued at $108.8 billion as of may 2017 (market capitalization value method)
generating revenue of $94.57 billion.
Competitive analysis in the Marketing strategy of Boeing –
Boeing competes with the companies in the segments such as commercial jet aircraft and the airline industry. Companies
such as Bombardier, Airbus, Embraer and companies from Japan, China & Russia give head-on competition to the Boeing
By initiatives such as improving operational processes, extensive customer support services network which spans the life
cycle of the airplane, aircraft acquisition, readying for service, maintenance and engineering, enhancing and upgrading,
and transitioning to the next model – as well as the daily cycle of gate-to-gate operations and cost reduction is helping the
company in remaining competitive in the market.
Market analysis in the Marketing strategy of Boeing –
Increasing political unrest, the rise of ISIS and other Islamic groups, geopolitical tensions between the nations, government
regulations, increasing economic activities between the emerging nations, increasing migrations of people, cargo activity,
and increasing demand for air travel in the commercial aircraft market are some of the factors shaping the aircraft market.
China and India have emerged as 1st and 4th most important nations based on (ADV) aircraft delivery value.
Customer analysis in the Marketing strategy of Boeing –
Boeing customers range from various companies from the aviation industry, governments of various countries,
space & research institutions who have differentiated needs.
The products offered to the customers are MTO (make to order) products which are customised as per the
requirement of the customers.
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