This case discusses the history of Boeing and salient forces affecting the global aircraft industry, along with the key strategic issues driving Boeing’s competitive strategies.
Boeing and Airbus dominate the global aircraft industry, but have very different visions of the future of commercial air travel. Consequently, the strategies they have devised to manage the competitive environment are disparate. The case provides a unique opportunity to explore these differences, how functional strategies support the overall competitive strategy, and the critical decisions now faced by both competitors.
The objective of the case study is to evaluate current industry conditions and to make corrective recommendations to improve Boeing’s strategy. The shortcomings of the company’s functional strategies should also be examined in search of measures to improve organizational performance.
Compare the two competitor's strategies. Based on the industry environment, what conclusions can be drawn?
Since Boeing made its decision to pursue a product strategy based on the point-to-point airline business model, what new market conditions have developed? What impact are they likely to have on the company’s success?
Evaluate the pros and cons of Boeing's outsourcing strategy. Is there adequate support for the company's decision to "offload" parts production?
Consider the status of commercial aviation globally. Do Boeing's international strategies position the company to benefit from the most promising opportunities in foreign markets?
ANALYSIS
Compare the two competitor's strategies. Based on the industry environment, what conclusions can be drawn?
Each company monitors market signs to determine its next competitive moves. Forecasts are based on uncertain variables that make accurate projections difficult, and the competitors have adopted views of future trends in domestic and international air travel that are in great contrast. As a result, Boeing