Boeing Case Analysis

Topics: Boeing, Airbus, Boeing Commercial Airplanes Pages: 10 (3642 words) Published: November 30, 2012
Lincoln University
Graduate School of Business

Marketing Management Team Project

Case 3: Boeing Company

Team - 8
The five elements group:
Derek Dellape : 7551

As the largest aerospace company in the world, the Boeing Company employees more than 153,000 people in some 67 countries. The great dominance of Boeing is due to its 1997 merger with McDonnell Douglas Corporation, an aerospace manufacturer, and its 1996 purchase of the defense and space units of Rockwell International Corporation, an aerospace contractor. The corporation is the world’s number one maker of commercial jetliners and military aircraft with more than 9,000 commercial planes in service worldwide, including the 717 through 777 families of jets and the MD-80, MD-90, and MD-11. In the defense sector, the company makes military aircraft, including fighter, transport, and attack aircraft; helicopters; and missiles. Moreover, Boeing is the nation’s top NASA contractor and the leader of the U.S. industry team for the International Space Station and directly involved in commercial space projects such as satellite networks. History

The Boeing Company was founded by William Edward Boeing and his colleague George Conrad Westervelt in 1916, in Seattle, Washington. The first plane built by Boeing and Westervelt was a “B & W” seaplane and it was sold to the government of New Zealand which employed the plane for mail delivery and pilot training. The enterprise was expanded due to opportunities in the airmail businesses which lead to development of an extremely versatile and popular airplane called the Model 40. This airplane could carry 1,000 pounds of mail and a complete flight crew, and still have room enough for freight or passengers.

In the years leading up to World War II Boeing led the way in developing single-wing airplanes. They were constructed completely of metal to make them stronger and faster, more efficient aerodynamic designs were emphasized and finally, directional radios were installed which enabled better navigation and nigh flying. At this point, Boeing had established itself as the leading manufacturer of airplanes.

During the 1950’s and 1960’s, Boeing was allowed to use the government-owned B-52 construction facilities for the development of a new civilian/military jet. This new jet, the B-707, first rolled off the assembly line in 1957. Boeing enjoyed a large degree of success and profitability with the 707. The company devoted its resources to the development of a number of other passenger jet models, including the 720 (a modified 707) and the 727 introduced in 1964, which was able to carry 143 passengers. During this time the company also recognized a demand for a smaller 100 passenger jetliner for shorter routes. As a result, Boeing developed the 737 model which was considered to be a very technological advanced jetliner. Meanwhile, Boeing expanded its involvement in the defense market through the 1960 acquisition of Philadelphia-based Vertol Aircraft Corporation, a maker of military helicopters. During the Vietnam War, Boeing Chinook and Sea Knight helicopters were heavily utilized by American forces. The 1960’s also saw Boeing active in the NASA contracting sector. As the Cold War continued, Boeing was selected to develop the Minuteman intercontinental ballistic missile system. In addition, Boeing was heavily involved in NASA’s Apollo project of the 1960’s, beginning with its production of several Lunar Orbiters as well as the Lunar Roving Vehicle, which was used to explore the moon in the early 1970’s. During the 1970’s, Boeing tried to diversity its business by entering the metro-rail business, manufacturing mass transit systems for Boston, San Francisco, and Morgantown, West Virginia. The systems were modern, computerized, and efficient but prone to frequent breakdowns. After fulfilling its obligation to rectify the systems (at great cost), Boeing decided to discontinue its ground transport...
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