Purpose
This report discussed the components of internal analysis, competitive advantage, and strategic competitiveness of Boeing Company. This is done by analyzing the tangible & intangible resources, capabilities, and core competencies in order to clarify Boeing’s strengths and weaknesses.
Resources
Exhibit 1 Tangible | Intangible | Manufacturing plants | Boeing’s digital design software | Composite and metal materials | Dynamic assembly line | Headquarters building | “Moonshine teams” strategy | Machinery used for lean production | Boeing’s brand name | Financing/ Launch aid from NASA | |
Boeing’s newest jet, the 787, is made out of composite plastics and carbon fiber in order to be more efficient and comfortable. The new materials allow the plane to be pressurized at a lower elevation, which results in less jet lag. Also, the cabin humidity can be raised to around 20% because these materials do not corrode like metals. Through the use of lean productions, Boeing significantly reduced the cost of machinery used for manufacturing, along with inventory costs.
For financial resources, Boeing received $12 billion from NASA to develop technology. They also received $1 billion in loans from Mitsubishi, Kawasaki, and Fuji for the development of the 787. Furthermore, Boeing had received launch aid from U.S. Government subsidies.
Boeing has a reputation as one of the best manufacturers of commercial and military jets. Its strong brand and name represents the position in the aerospace industry. Boeing has encountered some scandals in upper management, however they are trying to restructure its reputation and make a comeback.
Capabilities
Exhibit 2 Capability | Valuable | Rare | Costly to imitate | Non-substitutable | Dynamic Assembly | Yes | Yes | Yes | Yes | Lean Production | Yes | Yes | Yes | Yes | Composite Materials | Yes | Yes | Yes | Yes |
Lean production at Boeing was a very