Boeing 787:the Dreamliner

Topics: Boeing 787, Boeing Commercial Airplanes, Airline Pages: 6 (2155 words) Published: May 12, 2011
In the 21st century, any company whose ultimate goal is to achieve leadership within its industry, it is necessary that they think beyond their domestic market and consider global markets instead. By doing this, they need to be able to change or implement their strategy in order to stay as competitive as they were before, form alliances and partners along the way and outperform the competition. For Boeing, trying to become the global leader in its industry again meant that they needed to launch an exceptional, better aircraft than their competition, Airbus. They were also relying on foreign partners more than ever before to get every part ready in time for assembly. With the launch of their 25th model named the 787 Dreamliner, scheduled for delivery in 2008, Boeing promised to provide airlines with a fuel efficient aircraft and passengers with a modern, convenient airplane that will take them distances in comfort at competitive prices. A potential benefit of this new aircraft was to decrease fuel consumption by 20% making it more environmental friendly with its quieter takeoffs and landings. In order to achieve this grand goal, however, Boeing allied with the world’s best and most capable companies to help them design the plane’s components. By doing this, Boeing perceived its extended supply chain and resources provided by its manufacturing partners as their competitive advantage that will allow them to reduce total costs. As far as pleasing the passengers’ tastes, Boeing was committed in providing them with the option of flying to their destinations non-stop. This will then save them from having to change from big, overcrowded planes to smaller, uncomfortable ones when connecting their flights. They also thought of incorporating a mood lighting system as well as changing the pressure to allow more humidity with the ultimate goal of stimulating the passengers’ senses and decrease fatigue from the long flight. This all sounded great and very promising from Boeing however, demand from the buyers, competition from Airbus and a conflicting industry forecast were issues that Boeing needed to be aware of.

A good way to know about a company’s future strategic course is through its vision and mission statements. Boeing’s vision is “People working together as a global enterprise for aerospace leadership”. Although somewhat broad, it does mention that they are aiming for the industry leadership. They way they will end up doing is this is by running healthy core businesses, leveraging their strengths into new products and services, and by opening new frontiers whether it is domestically or globally. As far as their mission statement goes, it seems to be more specific as to how they will actually put their mission into action. “We will be a world-class leader in every aspect of our business: in developing our team leadership skills at every level, in our management performance, in the way we design, build and support our products, and in our financial results.” However, they still don’t mention anything about partnering with foreign companies as they have obviously done when designing the Dreamliner. Their main strategy, at least that is shown in this case study, is to outsource their operation to foreign partners which could be a complicated thing to do. This could actually cause some kind of political controversy as far as the motives behind this outsourcing are concerned. Boeing sought for suppliers that were very capable, technological advanced and highly skilled in manufacturing especially with India and China. However, Boeing only pays a fraction of the cost that would take a U.S. supplier. But it seems that the main reason behind Boeing outsourcing to these countries in specific is because there is potential market growth and they want to have access to it. With India and China becoming very proficient in the art of manufacturing airplanes, it would be of great advantage that Boeing partners with them when the boom hasn’t...
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