The case set up in 2003 is about BOEING, the world
pioneer and leader in aerospace industry and their just
one product stumble that cost them to run 2nd for the
1st time in a two horse race. They wanted to develop a
high speed jet liner called SONIC CRUISER which could
carry 225 passengers at close to the speed of sound
and was referred to as “the next great flying machine”.
But the product couldn’t become reality because:
It was a wrong plane at the wrong time, and
It demanded too many changes in the conventional air
traveling, repair and maintenance.
Though initially it seemed lucrative to some airliners,
but then 9/11 happened and changed everything. The
aviation industry underwent a big economic low, and
was in search of cheap and economical products.
Besides, Boeing itself was confused whether to go for
super efficient plane or the sonic cruiser.
Even after 4-5 rounds of meetings with the customers,
boeing was still not able to make its decision. Airbus,
which was following every step and move of boeing
grabbed every opportunity to make a mock of boeing’s
sonic cruiser. At last boeing decided to cancel the
project saying that they will come up with the project
later as it requires more detailed and refined research.
Chronology of Boeing company
Founder: William E. Boeing ( 1881-1956)
March 19, 1910: Mr. Boeing bought a shipyard in
Seattle which later on became his first airplane factory.
May 9, 1917: the Boeing Airplane Company got its
World War II: B17 and B29 Bombers.
1958: Boeing 707, the first civillian passenger plane.
Chronology of the company (cont.)
1969: Boeing 747 Jumbo Jet.
1996: Rockwell International
1997: McDonnell Douglas
2000: Hughes Aircraft
1,80,000 Employees currently.
2001: company headquarter moved from Seattle to
Boeing’s Business Lines
Aerospace, Defense and Communication Industries
Fighter Jets, Helicopters
Commercial Airline Industry
Boeing 707, 737, 747, 757, 767, 777
Airplane maintenance and flight training.
In commercial plane category:
Airbus Industries (leader in this segment since
In aerospace & defense category:
Lockheed Martin (leader in this category).
Airline mergers and bankruptcies.
The effect of september 11.
Declining company image.
Substitute products & services.
Lack of communication in the company’s organisation.
Employees’ morale going down due to the failure of
747x , Joint Strike Fighter and most recent being the
Missed out component of Marketing
Didn’t take into consideration the consumers’ aspect,
confined research to their own customers.
Forgot to consider the prevailing industry trends.
Lack of cost effectiveness.
Gambling with the design.
Blind eye on new market entrants.
Should have paid more attention on the timing of their
Does the design of Sonic Cruiser makes
sense in 2011, when the world
economy is growing nicely….?
Though it can prove to be good to people for whom time is
more important than money but, the question is….
How much % of total air passengers belong to business
And will common people actually pay for reaching just
one hour earlier?
Availability of substitutes.
Besides this, Its unique design requires an entire change in the conventional air traveling, right from rewriting their
schedules to overhauling their maintenance & service
procedures, which would only add to its already high cost.
Please join StudyMode to read the full document