Boeing Case Study

Decent Essays
1) What is 787’s value proposition?

In an environment where price competition is high and cost (labor, fuel) is getting higher, Boeing focused on delivering values of efficiency to persuade consumers to use its product. Offers to design and deliver a super-efficient plane that would fly as fast as today’s fastest commercial airplanes and encourage airlines to retire their Boeing 767s and Airbus A300s and A310s and replace them with 787s rather than Airbus’s A330 planes at that time. Boeing focus on dramatically reduce journey times whilst provide affordable than before and comfortable for passengers. An improved passenger experience and cutting-edge innovations make this plane innovative and popular to airlines and passengers. The Dreamliner
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As there is an intense competition in the airplane market it’s important to keep the cost low and to maximize the number of airplane circulation as much as possible to get higher profits. Boeing responded to these challenges offering a plane that is lower in terms of size and fuel consumption while enabling capacity in terms of cargo and distance at the same time. It’s important for airlines to minimize the impact of rising fuel costs on their profitability. There were huge demands for planes designed for fuel efficiency, therefore aerospace companies and their suppliers are motivated to offer such planes. In the past, Boeing has always been a first-mover in its industry and has been rewarded with huge profit margins and a monopoly-like status. Recently, the market share for aircraft orders has been taken over by Airbus, the newcomer, so in order to compete against the competition, Boeing needed and innovation strategy and it has decided to come up with the …show more content…
Boeing is giving up its unique position of superior knowledge on “how to build a commercial aircraft”. Strategic partners today could turn into competitor’s tomorrow. They are risking their ideas and knowledge (know-how) to future possible competitors such as Japan and China. Another risk would be Boeing relying on its tier-1 global strategic partners to develop and build entire sections of the Dreamliner that are based on unproven technology. Any break in the supply chain can cause significant delays in the overall production. They take the risk to deliver the products on time, as they depend on their global partners to supply them with their parts. Also, they are vulnerable to having defects in their products as suppliers might not meet Boeing’s exact demands. They can’t intervene in the manufacturing process of the counterpart suppliers; they are not able to build the counterparts in a “build to print”

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