Boeing Case Study

Topics: Boeing, Boeing 787, Boeing Commercial Airplanes Pages: 21 (7359 words) Published: April 24, 2013
I. Boeing History| |
a. building blocks| |
b. growing UTAC| |
c. deregulation| |
d. the jet age| |
II.Boeing as a Market Leader| |
a. threat of competition| |
b. the attack| |
c. management| |
III. Threat of New Competition| |
IV. Future of Boeing-Creation of Dreamliner| |

I. The Boeing History
A. Building Blocks
A determined man once said, “We are embarked as pioneers upon a new science and industry in which our problems are so new and unusual that it behooves no one to dismiss any novel idea with the statement, ‘It can't be done’ (1995). This man was William Boeing, the founder of the leading aircraft company with annual revenues of 81 billion dollars at the end of 2012 (Mergent, 2013). This drive and determination personality allowed Mr. Boeing to drop out of Yale University to begin a successful lumber business in Washington State. After attending a public flying exhibition in Los Angeles his ambitions changed and became fascinated with aviation and determined that he would be able to build bigger and better aircrafts than anyone else. Teaming up with George Conrad Westervelt a Navy engineer from Massachusetts Institute of Technology, he built and designed his first seaplane the B&W. With much success in this endeavor he continued to created his own plane-building company by the name of Pacific Aero Products which grew into a new company name of Boeing Airplane Company the following year (PBS, 2005). William Boeing’s passion to succeed is at the core of The Boeing Company culture and a direct result of the growth for the past 97 years as well as into the future. William Boeing began to grow his business by acquiring more talent such as Mr. Westervelt and surrounded himself with a staff of 28 pilots, carpenters, boat builders, and seamstresses. Small operations produced a learning environment but operations kicked into high gear during World War I with airplanes being used in battle for the first time. The Navy ordered 50 Model C’s from the tiny Boeing shop. Boeing soon became the lead producer in aircraft fighters and mail service air manufacturers. These major contracts can be viewed in Figure 1 on the Timeline provided by the Seattle Times (2003). The succession portrays Army Air service and government defense contracts growing however the commercial market was unresponsive until 1927 and 1928 with the investment in United Airlines. B. The Growing UATC

United Airlines was known as the United Aircraft and Transport Corporation. From the beginning Boeing surrounded himself with knowledgeable aviators and made valuable networking connections along the way. United Airlines creation was in part due to a developed business relationship with Fred Rentschler, a manufacturer of engines that were installed in each Boeing aircraft. On February 1, 1929 the UATC issued 800,000 shares of stock with Boeing as chairman (Boeing, 1995). Just as every other venture Boeing pursued, this was yet another success with the shares being worth millions as soon as the UATC absorbed airline concerns. The UATC absorbed airline threats by extensive vertical integration. Utilizing combined assets and capital United Airlines soon created Stearman Aircraft Co. in Wichita Kansas and Boeing Aircraft of Canada. Stearman created aircrafts that could be landed both on land and water while the Canadian company acquired the Hoffar-Beeching shipyard in Vancouver, B.C. The shipyard built not only yachts, fishing boats and ferries, but also the Model 40A mailplane product lines (Boeing, 1995). Turning the shipyard into a more productive manufacturing plant and optimizing on geographic locations such as Wichita and Vancouver were the building blocks of success for the UATC. The UATC furthered its acquisition of valuable resources such as the incorporation of: Hamilton Metalplane Co. a propeller manufacturer as well as Standard Steel...
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