Essay about Boeing's E-Enabled Advantage

1902 Words Nov 23rd, 2012 8 Pages
Boeing’s e-Enabled
Advantage

Contents Executive Summary 3 Problem Statement 3 Internal SWOT 3 External SWOT 4 Michael Porter’s 5 Competitive Forces 5

Executive Summary
Boeing is a world leader in the aerospace industry. At one point they were the highest seller’s commercial aviation with no competition in sight. That all changed, and soon Boeing had to change.
Background
Boeing was founded in 1916 by William Boeing. The company started by making small seaplanes with low top speeds. The first customer of Boeing was the New Zealand government. They used the planes for the countries mail, and to train pilots. The real pay-off was when the United States entered World War I and ordered a large amount of seaplanes. Between
…show more content…
The main factor for this is that customers are price sensitive. If flights are too expensive, customers will switch to other companies for air travel. Therefore, customer has a large impact on how it can affect a company’s margins and volumes. Airline companies are considered to be high risk because they can place higher pressures on Boeing. Airline companies purchases large volumes of aircrafts when they are expanding or replacing outdated aircrafts. If Boeing’s aircrafts are too expensive, airline companies will purchase their aircrafts from Boeing’s competitors at a lower price. Switching aircraft manufactures is simple for airlines cause due to the competitive rivalry in the airline industry.
4. Availability of Substitutes The availability of substitutes would be medium-high risk. Since there are many aerospace manufacturing companies out there. If an airline needed extra aircrafts and Boeing planes are too expensive, they will look for cheaper plans from their competitors. Consumers also have the ability to use substitutes as well. If flights on certain airlines are too expensive, consumers can take their money and spend it elsewhere. Consumers also have the option of using other methods of transportation when airline industry is too expensive. Passengers may use buses, ship, trains, cars, helicopter, or private jets for their transportation. Since substitutions

Related Documents