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Boeing: Selling a Dream(liner)
Transcript of Boeing: Selling a Dream(liner)
Boeing developed new product innovations in the 787 Dreamliner.
The 787 Dreamliner core benefit is to provide an evolutionary step in air transportation
“looking at every aspect of the flying experience”.
Boeing 787 Dreamliner brings the speed range and capacity of the big jumbo jets to the mid-size market.
-20% less fuel consumption
-interior that offers a flexible design
-increased cargo capacity
-enhanced safety and technology
-improvements to the passenger
Boeing is the world's largest
aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems.
Boeing Commercial Airplanes
Boeing Defense, Space & Security.
Time context: 1916-Present
Boeing’s slow purchase process for its airplane productions
(a) Lack of Product Innovation
(b) Inefficient customer relationship management
To continuously improve in quality of products and processes
To provide a highly-skilled and motivated workforce
To inure capable and focused management
Strong global network
Broad product line that covers most major market niches / R&D development
A hierarchical, ridged, and semi autocratic management style, which is a product of its military heritage.
Dependence on US government and WTO-incompatible subsidies
New aircraft to gain market share
Increase demand for point to point routes
Slowdown in the commercial jet market
Uncertain airline industry environment
To stay in almost contact with customers
(on a daily basis)
“When you buy an airplane, it is like getting married.
It’s a long-term relationship.”
Alternative Course of Action
Control on the overall design and engineering of its aircrafts
Advantage: Keeps manufacturing and assembly costs low
Provide on-site support for its suppliers
Advantage: Improved monitoring functions
Disadvantage: Additional tasks waiting for engineers
Make-buy decisions should be based on complete assessments of all the costs and efficiency of all suppliers
Advantage: Lesser risks of cost-cutting
Disadvantage: More involvement on the purchase processes
Keep key technologies closer to home
Advantage: Avoidance of delay in the delivery of products
Reevaluate sourcing strategy
Advantage: Helps company determine
Disadvantage: Great risk and costly
by: Three Musketeers