The document provides a strategic profile of Boeing and analyzes their position compared to main competitor Airbus. It identifies key issues like delays in outsourcing materials and recommends reconstructing scheduling for production to implement a more effective strategy for competing against Airbus through faster and more efficient manufacturing. The main problem identified is how Boeing can regain their position as market leader against Airbus.
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The document provides a strategic profile of Boeing and analyzes their position compared to main competitor Airbus. It identifies key issues like delays in outsourcing materials and recommends reconstructing scheduling for production to implement a more effective strategy for competing against Airbus through faster and more efficient manufacturing. The main problem identified is how Boeing can regain their position as market leader against Airbus.
Original Description:
A case study in Management regarding Boeing VS Airbus
The document provides a strategic profile of Boeing and analyzes their position compared to main competitor Airbus. It identifies key issues like delays in outsourcing materials and recommends reconstructing scheduling for production to implement a more effective strategy for competing against Airbus through faster and more efficient manufacturing. The main problem identified is how Boeing can regain their position as market leader against Airbus.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
The document provides a strategic profile of Boeing and analyzes their position compared to main competitor Airbus. It identifies key issues like delays in outsourcing materials and recommends reconstructing scheduling for production to implement a more effective strategy for competing against Airbus through faster and more efficient manufacturing. The main problem identified is how Boeing can regain their position as market leader against Airbus.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
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Strategic Profile
Boeing Country of Origin United States of America Airbus Europe Outsource only minimal work to Asian countries and most suppliers are associated with European Union countries. Just-in-time delivery Japanese suppliers may use technology shared Supplier Dilemma by Boeing to eventually design their own airplanes. Best Aircraft Strategies 787 Dreamliner utilize smaller airports Point-to-Point travel United Airlines FedEx (from Airbus) Financial aid in the form of federal research and development contracts from NASA and the Pentagon and tax breaks from Washington State Tightened control over the knowledge it shares with suppliers A380 utilize largest airports Hub-to-Hub travel Air Asia AirBerlin Southwest United Airlines (from A320) Financial support through subsidiaries called launch aid from Spain, France, Germany and Great Britain Suppliers 70% are outsourced from Japan and China
Customers
Government Issues
Point of View
Objectives
- Lessen the delay in outsourcing materials - Implement an effective strategy to compete against Airbus - Have fast & efficient production of materials
Main Problem How can Boeing company regain their position as the market leader against Airbus? Sub problems: Delays in the construction of airplanes & the necessary things that should be done*** ***manpower requirements, materials delay
Situational Analysis Demographics Political Technological External-General Socio-cultural
United Airlines, FedEx, & US Department of Defense use Boeing aircrafts
Heavily aided by the US government financially for R&D in defense. Federal, state, local levels in taxes & regulatory issues
Strong in R&D, finding ways to lessen fuel consumption. IT, privacy concerns, production, and Internet.
Lessens carbon footprint.
Industry: Competitors Commercial Planes Airbus The worlds leading aircraft manufacturer whose customer focus, commercial know-how, technological leadership and manufacturing efficiency have propelled it to the forefront of the industry. Embraer Bombardier Is the worlds only manufacturer of planes and trains, weve built an extensive and diverse portfolio of a winning mobility solutions. Everywhere people travel by land or by air, a Bombardier product is ready to transport them
Is one of the worlds leading aircraft manufacturers, a position achieved through the commitment to full customer satisfaction.
Industry: Competitors Military Aircrafts
Lockheed Martin
Northrop Grumman
Raytheon
General Dynamics
Internal: value chain
Value chain analysis (primary activities) Inbound Logistics Operations materials handling, inventory control, disseminate materials to a product convert all the inputs provided by the inbound logistics to final product form which is the assembled plane distributing the final product to the customers through shipments strong customer relationship with their connections repair for damages and adjustments
outbound logistics marketing and sales services
Value chain (support activities) procurement to purchase the inputs needed to
produce (raw materials and machinery)
Technological development Human Resource management
Firm Infrastructure-
used for their research and most especially product design and concept training employees/laborers and compensation gain support from government, strong financing performance
Porters 5 Forces Commercial Airplane Barriers to Entry Threats of Substitutes Buyers Power Suppliers Power Rivalry High Medium High Medium High Military Aircraft High Medium Medium Medium Medium
Major competitor: Airbus
Formed in 1970 in Europe From a Fledgling to a Formidable Opponent Since 2000 Airbus has been the number 1 in sales In 2005, achieved a 51% share of global market They focused on the needs of the market, a standard product line, efficient production methods, and successful marketing ploys. They established a significant market share and a brand name by making airplanes that addressed the needs of the market.
SWOT Analysis Strengths Weaknesses - Largest global aircraft manufacturer by revenue, - Slow to react to market demand orders and deliveries - Complex supply chain - Second Largest Aerospace and defense contractor in - dependence on US government the world - Largest exporter in the US - Strong financial performance - Product diversification - Strong focus in R&D - Strong customer relationship
Opportunities
Threats
- Emerging markets - Expanding in the south east - International travel growth - Rising defense spending in the US
- Airbus (competitor) rising fuel costs - slowdown in commercial jet planes
Alternatives Set new strategies for sub problems: to reconstruct an effective scheduling for production to avoid delays hire manpower and to maintain a targeted time to have a fast production and avoid delays.
Criteria - avoid expense - fast and efficient strategies - doable for big business production - can be maintained for a long run
Recommendation
Set new strategies: to reconstruct an effective scheduling for production (ex. making a gantt chart).
