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Beoing Analysis

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Beoing Analysis
Influence of Recent Economic Trends The Boeing company (Boeing) has done a good job of keeping sales and market share high through the recent economic downturn. Much of this has been due to the increase of demand in air travel internationally. In 2011, about 50% of Boeing’s revenues came from international markets (Boeing, 2011). Countries like China and India have a growing middle class, with greater opportunity for travel. With this greater demand for travel opportunities in these areas, new commercial airlines have started business. The inception of new airlines has meant new contracts for Boeing. These increases in foreign sales have greatly helped Boeing deal with losses from the economic downturn here in the US. Another economic trend affecting the airline industry it the increased cost of fuel. Boeing has tried to tackle this issue head on by developing new products that will increase fuel efficiency. Boeing hopes that these new products will increase its sales and market share. One project is the Boeing 737 MAX. This is a new version of the original single-aisle 737 has new, more fuel-efficient engines (Boeing, 2012a). The 737 MAX will be 10-12% more fuel efficient than the original, and will cost significantly less to operate when compared to competition aircraft of the same size. Another project is the new 787 Dreamliner. The 787 is 20% more fuel efficient that comparable aircraft yet travels at speed similar to the fastest airliners (Boeing, 2012b).
Adapting Strategy Boeing has taken great strides to improve its internal structure and processes in the last eight years. At the heart of this improvement is what the company calls the “One-Boeing” concept (Thompson, 2012). This program was started by current CEO Jim McNerney to bring what were fractured segments of the company and integrate them into a single, high-performing unit. When McNerney took over as CEO the company was full of redundant facilities and divided loyalties, all products of the



References: Boeing (2012a). The Boeing Company 2011 Financial Report. Retrieved online from Mergent Online from: http://www.mergentonline.com.ezproxy.apollolibrary.com/documents.php?compnumber=1048 Boeing (2012b). 787 Dreamliner. Retrieved online from: http://www.boeing.com/commercial/787family/background.html Thompson, L. (2012). ‘One Boeing:’ Aero Giant Poised For Record Results. Forbes. Retrieved online from: http://www.forbes.com/sites/lorenthompson/2012/09/25/one-boeing-aero-giant-poised-for-record-results/ Boeing (2008). One Company, One Technology Plan. Frontiers. Retrieved online from: http://www.boeing.com/news/frontiers/archive/2008/may/ts_sf03.pdf Seil, W. J. (2011a). Global Boeing. Frontiers. Retrieved online from: http://www.boeing.com/news/frontiers/archive/2011/june/i_bds.pdf Seil, W. J. (2011b). Forward Deployment. Frontiers. Retrieved online from: http://www.boeing.com/news/frontiers/archive/2011/june/i_bds.pdf Arkell, D. J. (2007). Bringing it All Together. Frontiers. Retrieved online from: http://www.boeing.com/news/frontiers/archive/2007/december/mainfeature.pdf Mergent Online, (2012). As Reported: The Boeing Company, Company Financials. Retrieved online from: http://www.mergentonline.com.ezproxy.apollolibrary.com/companyfinancials.php?pagetype=asreported&compnumber=1048&period=Annuals&dataarea=PL&range=3&currency=AsRep&scale=AsRep&Submit=Refresh

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