Boeing Strategy
Group 9 Case Study (Chapter 10) Can Boeing Keep Flying High
Rekha Ghantal T. Alex Liu Sanjay Sampath Senthil Subramanian
1
Agenda
Introduction: Alex New Business Strategies : Senthil New Technology Strategies: Rekha Strategy Analysis and Future Prospects: Sanjay
2
Chronology of the Boeing Company
The Chronology of Boeing can be found at http://boeing.com/history/boeing/chr1_beg.html. Founder: William E. Boeing (1881-1956) March 10, 1910: Mr. Boeing bought a shipyard in Seattle which later became his first airplane factory. May 9, 1917 : the Boeing Airplane Company was named. World War II: B17 and B29 bombers
3
Chronology of the Boeing Company (cont.)
1958: Boeing 707, the first civilian passenger plane. 1969: Boeing 747 jumbo jet Recent Acquisitions:
1996: Rockwell International 1997: McDonnell Douglas 2000: Hughes Aircraft
180,000 employees currently
4
Boeing’s Business Lines
Aerospace, Defense and Communication Industries
Fighter jets, helicopters Missiles Satellites, GPS Flight instruments
Commercial Airline Industry
Boeing 707, 737, 747, 757, 767, 777 Airplane maintenance, flight training
5
Business Challenges
Airbus Industries: a Competitor in the Commercial Airline Industry
1971: Established by British and French governments. 1996: Decided to challenge Boeing for the jumbo jet market.
Airline Mergers and Bankruptcies The Effect of September 11.
6
Competition: Airbus A380 vs. Boeing 747-400
A380 # of passengers Cabin Operating cost 555 Double-deck
747-400 416
A second story “hump” 17% less than 747-400
7
Technical Challenges
Operational Inefficiency
Paper intensive processes. Manual work introduced errors. Lack of coordination among various engineering departments. Supply chain problems.
8
New Business Strategies
Shift Focus to Aerospace and Defense
Smaller airline market Merged ……. In 2002 Focused on Network Centric Warfare Air traffic management - GPS Paperless design model
Rekha Ghantal T. Alex Liu Sanjay Sampath Senthil Subramanian
1
Agenda
Introduction: Alex New Business Strategies : Senthil New Technology Strategies: Rekha Strategy Analysis and Future Prospects: Sanjay
2
Chronology of the Boeing Company
The Chronology of Boeing can be found at http://boeing.com/history/boeing/chr1_beg.html. Founder: William E. Boeing (1881-1956) March 10, 1910: Mr. Boeing bought a shipyard in Seattle which later became his first airplane factory. May 9, 1917 : the Boeing Airplane Company was named. World War II: B17 and B29 bombers
3
Chronology of the Boeing Company (cont.)
1958: Boeing 707, the first civilian passenger plane. 1969: Boeing 747 jumbo jet Recent Acquisitions:
1996: Rockwell International 1997: McDonnell Douglas 2000: Hughes Aircraft
180,000 employees currently
4
Boeing’s Business Lines
Aerospace, Defense and Communication Industries
Fighter jets, helicopters Missiles Satellites, GPS Flight instruments
Commercial Airline Industry
Boeing 707, 737, 747, 757, 767, 777 Airplane maintenance, flight training
5
Business Challenges
Airbus Industries: a Competitor in the Commercial Airline Industry
1971: Established by British and French governments. 1996: Decided to challenge Boeing for the jumbo jet market.
Airline Mergers and Bankruptcies The Effect of September 11.
6
Competition: Airbus A380 vs. Boeing 747-400
A380 # of passengers Cabin Operating cost 555 Double-deck
747-400 416
A second story “hump” 17% less than 747-400
7
Technical Challenges
Operational Inefficiency
Paper intensive processes. Manual work introduced errors. Lack of coordination among various engineering departments. Supply chain problems.
8
New Business Strategies
Shift Focus to Aerospace and Defense
Smaller airline market Merged ……. In 2002 Focused on Network Centric Warfare Air traffic management - GPS Paperless design model