perhaps a catchy logo on planes‚ counters and ticket covers were sufficient in the olden days‚ today branding is a science of its own. Half a dozen branding agencies‚ most of them based in London and the USA‚ are fighting not just on behalf of toothpaste or cars but‚ with dogged determination‚ in the aviation industry over budgets worth millions. "The airlines are much more conscious today that branding can be a question of survival‚" says David Davis of the Future Brand agency. It is not just a matter
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Branding Brand: name‚ term‚ design‚ symbol‚ or any other feature that identifies one seller’s good or service as distinct from those of other sellers Legal name of a brand is a trade mark May identify one item‚ a family of items‚ or all items of that seller Powerful they have value and status Brand Equity: the dollar amount attributed to the value of the brand‚ based on all the intangible qualities that create that value People may be willing to pay more for the brand Brand strength can be
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have a direct impact on the variables used in calculating WACC. Such variables include the term structure of interest rate‚ the risk free rate‚ the beta‚ the market risk premium‚ the firm’s marginal tax rate‚ and its capital structure. Since Boeing has two business componentsdefense and commercialfirst begin by determining the unlevered beta for its commercial component. This is accomplished by comparing Lockheed and Northrop’s average unlevered beta which was .48 . The next step is to derive
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INTRODUCTION 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
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The Boeing 7E7 Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea October 15th‚ 2009 Contents Objectives 1 Management Summary 1 Cost of Equity 1 Equity Market Risk Premium 1 Beta 2 Risk Free Rate 2 Capital Structure Weights 2 Boeing 7E7 Project Evaluation 4 Circumstances for an economically attractive project 4 Market Demand 4 Market Share 4 Sensitivity Analysis 4 Conclusion 7 Board approval for the project? 7 Appendices 7 Appendix
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Advantages of Boeing’s outsourcing strategy * By outsourcing‚ Boeing is able to reduce costs and generate sales. Outsourcing to countries such as India can give the company access to cost-effective services and get access to specialized skills and services. * Boeings’ strategy allowed entry into two of the largest and fastest growing airplane markets (china and India). * It gained the ability to distribute some of the risks associated with large investment required to build an airplane
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When it comes to investing in the 7E7 project the investors have three major options. The first of these options is to invest in the project with a short term gain in mind. Secondly the shareholder can invest expecting the project to pay off in the long-term. And lastly the prospective shareholder can choose to not invest in the project as a whole. In order to evaluate the profitability of the 7E7 project we are going to calculate the WACC of the project and then compare it to the stated IRR of 15
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segment respectively‚ while Boeing only had 46%of revenues derived from this area; these four companies are not sufficiently similar. In addition‚ the commercial airline segment was depressed by the terrorism events and SARS‚ and the defense segment benefited from the Iraq war; as a result‚ it is too optimistic to use the beta of comparable companies. To take the crisis of the commercial airline market into account‚ it is more appropriate to use the estimated beta of Boeing according to past 60 trading
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Devising a Branding Strategy A firm’s branding strategy—often called the brand architecture—reflects the number and nature of both common and distinctive brand elements. Deciding how to brand new products is especially critical. A firm has three main choices: 1. It can develop new brand elements for the new product. 2. It can apply some of its existing brand elements. 3. It can use a combination of new and existing brand elements. When a firm uses an established brand to introduce a new
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Co-branding defines itself a s two or more companies forming an partnership‚ working together‚ creating marketing synergy. An example of this includes using a popular brand name ingredient in a brand name product. This is called "Ingredient Co-branding." Another form of Co-branding called "Composite Co-branding involves combining two distinct products together to form one marketable product. This benefits both retailers of said products. The difference between these two terms is the first
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