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about boeing- core competency



The Boeing Company is an American multinational corporation that designs, manufactures, and
sells airplanes, rotorcraft, rockets and satellites. It also provides leasing and product support services.
Boeing is among the largest global aircraft manufacturers, is the second-largest defense contractor in
the world based on 2013 revenue.

Future concepts
1. low-cost airplanes
2. environmental-friendly planes.

Core Competency
“detailed customer knowledge and focus — another step forward “
Boeing very skillfully employs the concept of Market shaping to maintain its status of world's leading
aerospace manufacturer in the 21st century. Market shaping is about understanding where your
customer is going; employing Boeing creativity, resources and technological expertise to cooperatively
help them there; and having the right products and services waiting when they get there.
Market shaping does not mean telling your customer what they should do or what they should buy.
Rather, think of market shaping as getting out ahead of the customer and "paving the streets" to allow
them to easily reach that future state.
Market shaping isn't easy. It involves thinking hard
going out 10, 15, even 20 years and asking: What
the air transportation system? What will give the
future? Then working backwards to determine

about the ultimate customer. For Boeing it means
will the airline passenger of the future want from
war fighter the critical edge in a conflict of the
what we need to do today and tomorrow.

To substantiate this point  When Boeing introduced the "market-fragmentation" concept in the mid1990s — and created a product line that emphasized smaller airplanes capable of flying non-stop,
point-to-point services — the idea was met with skepticism by many. Today, however, the market is
moving in that direction, average airplane size is decreasing, and point-to-point routes continue to
proliferate. (Data available).
Boeing has used this strategy carefully in other business divisions as well. Prime examples of Boeing's
market-shaping focus include the company's Air Traffic Management and Connexion by Boeing
business units. ATM is promoting a revolutionary satellite-based global air traffic management system.
Connexion by Boeing is pioneering real-time broadband connectivity for airplane passengers, airplane
crews and mobile platforms worldwide.
Providing key support for market-shaping activities today at the company's Integrated Defense
Systems business unit is the Boeing Integration Center. Located in Anaheim, Calif., the BIC is an
11,000-square-foot modeling and simulation facility that helps Boeing conceive, develop, test and
demonstrate how multiple command, control, communication, computer and intelligence systems can
work together.
The "integrated battlespace" that results offers military commanders, as well as front-line troops,
improved and timely situational awareness and helps them make faster and better-informed decisions.

Marketing Objectives of Boeing
The main goal of Boeing is to sell the most high quality and fuel efficient airplanes. They want the
world to know that they care about the environment by using the most technologically advanced
engines and designs for their airplanes. Boeing knows that the companies that are looking at buying
new planes want the most fuel efficient which will make their company more revenue. Boeing also
plays in the contract game with Lockheed Martin, Northrup Grumman, and other companies. They try

to put together the best performance aircraft at the lowest price in the competition as lowest bid wins
the contract.

Marketing Strategy
Boeing’s main strategy when targeting airplane companies is by researching all of the airplanes that
the companies currently use, and then they show what they have to offer with their new fuel efficient
airplanes to get the old gas sucking airplanes out of the sky to help save fuel cost. The biggest
problem with Airplanes companies is purchasing of gas, the only way they make profit now is by
selling out flights to main terminals, but they also have to offer those flights that may only be 1/5
full. Boeing’s new lineup of aircrafts can save a company millions of dollars annually on fuel. Boeing
also bids on most government contracts for a chance to win them, they pitch their best designs to the
government and hopefully they come out on top.
Competition Analysis
Boeing has two very big competitors; those are Northrup Grumman, and Airbus. Though Northrup
Grumman doesn’t produce any commercial jets, they are the biggest competitor with government
contracts with Army, Navy, Air Force, and Coach Guard. Airbus is the competitive commercial airplane
manufacturer company that Boeing competes against, and the only way to beat them, is to build
better planes. (data available for how Boeing manufactures better planes than Airbus).
Boeing has the best innovation in the aircraft business, They also make many different types of
prototype planes to fly around to see which give the best results, they spend billions of dollars every
year to design top performance airplanes, wither is be for the Government or for commercial use. Due
to Boeing’s success they have expanded globally and have many wonderful programs they offer in
Europe, like giving scholarships to kids that want to be Aerospace Engineers, they have many
community programs to give back. They also hire many new positions yearly.
Boeing has monthly reviews of everything that happens in the company, though emergency meetings
are held if there is a large problem. They discuss everything prom revenue, to staffing, planes,
competition, government, economic situation. Boeing believes that if they are always the first to know
something that they can take advantage of it to dodge a crisis or to help the company grow. The
biggest thing for Boeing is profit, they will not produce a plane that will cause them to lose profit, or
cause another company to lose money on.
Due to the large profit that Boeing brings in every year, they are able to hire the best engineers to
develop the most advanced planes to date. They bring in 20-50 billion dollars annually, and the
reason due to the large range is because of the contracts, because of the lowest bid rule. You main
have great years, you may have terrible droughts, but ether way Boeing still makes an incredible
profit due to commercial business. Boeing spends a vast amount of money on research as well as
benefit programs for its employees, a higher morale means a better employee, which then leads up to
a better company.

Core Product – Low Cost, Fuel Efficient, Environment friendly commercial aircrafts.
From a buyers point of view there are many criteria that apply to buying a new plane from Boeing. The
main two criteria we have chosen are capacity and distance. These criteria are relatable to Boeing’s
business buyers because for today’s airline companies the choice is whether or not to operate a short
distance service or a long distance service and whether or not to have high capacity or low capacity
flights. Most of Boeing’s commercial airplane buyers will require planes that are more effective at flying
short distances with a low capacity. The reason for choosing this position as Boeing’s many clients is
based mainly on two reasons. Firstly we can note from the major products and services section that
Boeing’s most delivered products to date has been its 737 family, with deliveries of over 4500 planes. The
737 family are particularly low capacity designed planes, incorporating seating capacities of between 110-

189 seats and are also relatively short distance planes with a maximum range of up to 3365 statute miles
which is considerably less than some of the company’s other products. From this information it would
appear that Boeing’s planes which are suited for low capacity short distance travel are where its current
many segment lies.
The second reason why we decided that this segment was where Boeing’s many clients are is because if
we look at today’s airline industry post September 11th we can note that many airline operators are
bankrupt or close to being bankrupt and that the successful airlines are mainly low-cost airlines operating
from point to point routes on a short distance low capacity strategy, Airlines such as Continental Airlines in
the United States and RyanAir in Europe. Incidentally both companies have a large fleet of Boeing planes,
mainly from the 737 family. The current trend in customer demand is entirely non-stop service until ones
ultimate destination.

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