Boeing 707
In 2004, Boeing was one of the United States' largest manufacturers, with nearly 160,000 employees and a net income of$I.87 billion. It was the world's largest acrospace company, and, for decades, had dominated the world's commercial
Copyright © 2006 President and Fellows of Harvard
College. Harvard Business School Case 807-011.
Professors Lynda M. Applegate and Joseph S. Valacich
(Washington State University) and Research Associates
Mara E. Vatz and Christoph Schneider prepared this case as the basis for class discussion rather than to illustrate effective or ineffective management.
Reprinted by permission of Harvard Business School.
1 Author interview, May 24, 2005. on embedded IT for flight controls and operations, it was not until United Airlines flew the first Boeing 777 in 1995, that a Boeing plane had an installed local area network inside the aircraft that could provide real-time information to flight crews, ground personnel, airline executives, and passengers. By 2004, Boeing executives believed that its "e-Enabled Advantage" would be the source of differentiation and leadership for decades to come. As you read the Boeing story, consider the following questions: What steps did Boeing take in its journey to build its e-Enabled Advantage? Is this a sustainable advantage and, if so, for how long? What recommendations do you have for Scott Carson, leader of the company's e-Enabled Advantage initiatives and newly named CEO of Boeing Commercial Airplane Company? aviation market. But as the industry reached maturity, Boeing's position in the market began to change. In 1999, its main rival, European-based
Airbus, outsold Boeing for the first time, and in 2003, it delivered more airplanes. Pressures inlensi fied after the terrorist attacks of September
II, 200 I, which translated into rescheduled airplane orders. Furthermore, airlines in the United
States-which made up a large part of Boeing's customer base-were undergoing
Copyright © 2006 President and Fellows of Harvard
College. Harvard Business School Case 807-011.
Professors Lynda M. Applegate and Joseph S. Valacich
(Washington State University) and Research Associates
Mara E. Vatz and Christoph Schneider prepared this case as the basis for class discussion rather than to illustrate effective or ineffective management.
Reprinted by permission of Harvard Business School.
1 Author interview, May 24, 2005. on embedded IT for flight controls and operations, it was not until United Airlines flew the first Boeing 777 in 1995, that a Boeing plane had an installed local area network inside the aircraft that could provide real-time information to flight crews, ground personnel, airline executives, and passengers. By 2004, Boeing executives believed that its "e-Enabled Advantage" would be the source of differentiation and leadership for decades to come. As you read the Boeing story, consider the following questions: What steps did Boeing take in its journey to build its e-Enabled Advantage? Is this a sustainable advantage and, if so, for how long? What recommendations do you have for Scott Carson, leader of the company's e-Enabled Advantage initiatives and newly named CEO of Boeing Commercial Airplane Company? aviation market. But as the industry reached maturity, Boeing's position in the market began to change. In 1999, its main rival, European-based
Airbus, outsold Boeing for the first time, and in 2003, it delivered more airplanes. Pressures inlensi fied after the terrorist attacks of September
II, 200 I, which translated into rescheduled airplane orders. Furthermore, airlines in the United
States-which made up a large part of Boeing's customer base-were undergoing