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Boeing: Selling a Dream(liner)

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Daniel Padua

on 9 October 2013

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Transcript of Boeing: Selling a Dream(liner)

Boeing: Selling a Dream(liner)

Summary
Boeing developed new product innovations in the 787 Dreamliner.
The 787 Dreamliner core benefit is to provide an evolutionary step in air transportation

Summary
“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.
Summary
-20% less fuel consumption
-interior that offers a flexible design
-increased cargo capacity
-enhanced safety and technology
-improvements to the passenger
travel experience.
Case Analysis
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




SWOT ANALYSIS

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.
Labor problems
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

OPPORTUNITIES
WEAKNESSES
THREATS
STRENGTHS
Long-term objective:
Short-term objectives:
To stay in almost contact with customers
(on a daily basis)
Main Problem:
Minor problem:
“When you buy an airplane, it is like getting married.
It’s a long-term relationship.”


Alternative Course of Action
2
Control on the overall design and engineering of its aircrafts
Advantage: Keeps manufacturing and assembly costs low
Disadvantage: None

3
Provide on-site support for its suppliers
Advantage: Improved monitoring functions
Disadvantage: Additional tasks waiting for engineers

4
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


5
Keep key technologies closer to home
Advantage: Avoidance of delay in the delivery of products
Disadvantage: None

Reevaluate sourcing strategy
Advantage: Helps company determine
outsourcing developments
Disadvantage: Great risk and costly

1
by: Three Musketeers
Full transcript