Boeing Company

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Executive Summary

The purpose of this report is to analyse the problems and issues faced by the Boeing company over history and provide a strategic plan for its future growth and development.

At first this report gives an introduction on the background and the current situation of Boeing. Then it conducts a series of analysis on the factors that might influence the development of the company, they include: SWOT analysis to discover the company’s internal strengths and weaknesses together with its external opportunities and threats; Industry and competitive analysis which by applying Porter’s five forces illustrates the competitive environment in the aviation industry and the situation Boeing is in; Company analysis- by analysing the company’s financial performance and each strategic business unit (SBU), it detects some potential problems in the operation as well as the developing direction of each SBU and; Macro environment analysis which covers the political/legal, economic, social and technological factors that might influence the performance of Boeing.

Based on the above study, this report gives recommendations on the strategy that Boeing should take. It is strongly recommended that Boeing should adopt a differentiation strategy meanwhile introduce cutting-edge technology in its aircraft design and operation management in order to reduce costs and increase competitiveness.

Table of Contents:
1.0 Introduction:1
1.2Problem/ opportunity statement:1
1.3 Assumption:1
2.0 SWOT analysis:2
2.1 Strengths:2
2.2 Weakness:4
2.3 Opportunities:5
2.4 Threats:6
3.0 Industry and competitive analysis:7
3.1 Rivalry among established companies7
3.2 The bargaining power of suppliers 7 3.3 The bargaining power of buyers8
3.4 Threat from new entries9
3.5 Threats of substitutes9
3.6 Conclusion from Port’s five forces analysis:10
4.0 Financial analysis:11
4.1 Profitability:11
4.2 Liquidity:12
4.3 Efficiency:12
4.4 Leverage:13
4.5 Conclusion from financial analysis: 13 5.0 Portfolio Analysis:14
5.1 Commercial aircraft business unit14
5.2 Defence and space business unit14
6.0 Macro environment analysis:16
6.1 Political Influence16
6.2 Economic influence17
6.3 Socio cultural influence17
6.4 Technological influence17
6.5 Conclusion from macro environment analysis 17 7.0 Statement of alternative options:18
8.0 Recommendation:19
9.0 Conclusion:22
10.0 Bibliography:23
Appendix A:25
Appendix B:32

1.0 Introduction:

The aim of this study is to analyse Boeing’s background and its problems so as to provide superior strategic approaches for future success. 1.1Background:
Boeing is the world market leader in the aviation industry. Its business includes manufacture of commercial aircrafts, defence and space equipments. Its commercial aircraft business has been enjoying the biggest market share since the past few decades and the merger with McDonnell Douglas in 1997 made the new Boeing the world largest producer of military aircrafts. The major competitor of Boeing in commercial airplane market is the European based Airbus industrie which has been increasing their market share aggressively during the last decade, and now becomes a big threat to the commercial aircraft business of Boeing. Lockheed Martin and Raytheon are Boeing’s major competitors in defence and space segment. 1.2 Problem/ opportunity statement:

By going through a detailed analysis of Boeing, this report finds that the conservative strategy the company is adopting does not favor their competition and development in the long run. Their narrow body aircrafts are a weak point that cannot compete with Airbus’ A320 in the market. Boeing’s financial operation is not as healthy as its competitor either, especially their low...
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