Boeing vs. Air Bus - SWOT Matrix

Boeing Commercial Airplane Group

SWOT Matrix

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SO Strategies-Use strength to take advantage of opportunities

WO Strategies-Overcome weaknesses by taking advantage of opportunities

ST Strategies-Use strengths to reduce threats

SW Strategies-Minimize weaknesses and reduce threats

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Strengths - S

1. Vast experience in Aircraft Design

2. Variety of Designs in different fields

3. Diversified business (commercial, military, aerospace)

4. Boeing owned Capital Corporation (lease and loan)

5. Production Capability (550 vs. 235 airplanes at Air Bus)

6. Highly technical qualified personnel

7. Continuous improvement programs for Designs

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Weaknesses - W

1. Failure to recognize potential competition.

2. Too many airplane designs and models.

3. Lack of in-depth analysis of markets

4. Individual customize offering without the proper infrastructure.

5. "King of the hill" and three (3) C's mindset

6. Inefficient production Systems

7. Supply chain.

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Opportunities - O

1. Big Airlines competition for newer, technologically advanced airplanes

2. The need for more advance and safer airplanes.

3. Timing to replacing old and obsolete airplanes. (cycles)

4. Potential new markets such as China, Asia

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Threats - T

1. Air travel market is very unstable (changes quickly)

2. Increased regulatory climate

3. Employees labor unions. & Engineers strike

4. Reduction in market share by Strong competition from Air Bus

5. Slow down on global economy resulting in order cancellations

6. Completion based on price only

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Strategies:

S

1,2,5

O

1,2,4

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