Boeing Case Study

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  • Topic: Boeing, Boeing Commercial Airplanes, Competition between Airbus and Boeing
  • Pages : 7 (1869 words )
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  • Published : May 8, 2013
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Marketing Management
Case: Boeing

Student: Professor:

Content:

1. Introduction……………………………………………………….…3

2. The case and the problem……………………………………………3

3. Goals and hypotheses………………………………………………..3

4. Boeing………….………………………………………………….…4 4.1. Synopsis…………………………………………………….…..4 4.2. Analysis……………………………………………………........4 4.3. Strengths & Weaknesses………………………………………..6

5. Conclusion…………………………………………………………...7

6. Q&A…………………………………………………………………8

7. Recommendations……………………………………………………9

Resources and materials………………………………………………10

1. Introduction

This study details to describe the Boeing company and the way it performs in the market. We will turn our attention to the way the company functions and how it manages to stay on top. Also we will present our proposals for the possible better operation of the company and its even bigger success.

2. The case and the problem

The case study of this paper is to show the importance and impact the company has on the market. On the way it manages to retain most of the market and what new and innovative things it does to keep fresh.

3. Goals and hypotheses

The aim of this paper is to point to the way the company and its marketing department work. The hypothesis of this paper can be basic and special, thoughtful assumption about the outcome of the research problem, which suggests a solution to the problem and what can be proven in practice. Here, it would read: ‘’An understanding of how the market works, we can assist in maintaining existing and establishing new markets and expanding the popularity of the company’’.

4. Boeing
4.1. Synopsis

Each year the strong economic growth of the U.S. led to sustained high oil and fuel prices. Between 2003 and 2007, jet fuel expenses have increased dramatically by 15 percent to more than 30 percent of operating cost. Because of this, many airlines are demanding new aircrafts that are fuel efficient in order to help reduce their operational costs. The current trend of increasing fuel prices plays a key role in increasing the current demand for new aircrafts and commercial airplanes that are more fuel efficient. In addition of the rising, fuel prices have taken a big effect on the economy. As fuel prices affect consumer goods and spending, leisure travel is expected to decrease, thus affecting the airline industry’s bottom line. Furthermore, since the economy has gradually moved into a recession from the effects of rising fuel prices many airlines that are struggling to stay out of bankruptcy, are looking for more ways to become cost effective. Thus further are in demand for new commercial aircrafts to become more fuel efficient.

In order to save on costs so that Boeing can provide lower prices to its customers Boeing and its competitor, Airbus, have both turned to outsourcing. It allows Boeing to share risks and focus on their relationship with marketing and suppliers. However there is a down side to this. When Boeing decided to outsource, engineers felt that outsourcing is not a great idea for the company. One of the reasons why engineers are against outsourcing is because they feel that their job is at stake and the economy has lost sight for bigger interests. .

4.2. Analysis
4.2.1.External analysis of Boeing:

Boeing is in duopoly when it comes to being in the large commercial aircraft industry, which means that there is one other major company that is competing with them directly in the same market, and that would be Airbus industries. Nevertheless, Boeing was the first to be in the large commercial aircraft industry until Airbus came along. McDonnell Douglas used to be another competitor to Boeing until the companies merged. Airbus entered the market with the help of ‘’launch aid’’, a form of government subsidies that helps a...
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