Boeing Porter's Five Forces

Boeing is known for their ability to produce a range of planes that covers most market niches. Boeing’s brand value is an intangible asset and is one of the company’s biggest strengths. Boeing is regarded for their quality and ever advancing technological advancements which helps establish relationships with customers and suppliers to meet demand. Proof in this statement is the 787-8 model which has progressed to the 787-9 model. The 787-9 and are larger aircrafts and can travel longer distances as opposed to the 787-8 (CNET.com, 2014). By continuing developing products to meet customer demand, Boeing has a large market share in the market, boasting 43% in the commercial airplane deliveries according to Forbes (2016). This is another strength …show more content…
Boeing does this by looking for opportunities so that can get higher profits while also looking for potential threats in order to reduce the damage to the firm. Assessing the external environment involves two stages; information gathering and information assessment. Gathering information on opportunities and threats allows Boeing to determine their market position and the state of the industry. By analysing and evaluating the gathered information, Boeing is able to develop strategies to advance their market …show more content…
The model consists of the five forces, in which using the relevant forces, we can identify Boeing’s threats. One of the the Porter’s Five Forces is threat of new entrants. Boeing will determine the possibility of new firms entering the market and will determine the impact they will have in the industry and directly to the 787 model. A profitable industry such as the commercial airline industry will attract new entrants. According to Forbes (2016), in the commercial airplane deliveries, Boeing boasts 43% of the market share. However, Boeing faces the threat of new entrants as Brazil’s Embraer, Canada’s Bombardier and China’s Comac are set to enter the market in the coming years. Embraer and Bombardier who previously primarily focused on producing small regional airplanes are now positioning themselves of producing larger commercial airplanes. China’s Comac C919 airliner will directly compete with Boeing’s 787 as the C919 seats between 156 to 174 passengers. Comac is a state run company which means Comac will not face strict regulation or government policies like Boeing will in the China’s market. According to Rugman & Collison (2012), a way to reduce the threat of new entrants is to keep costs low and consumer loyalty