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Strategic Profile

Boeing Country of Origin United States of America Airbus Europe Outsource only minimal work to Asian countries and most suppliers are associated with European Union countries. Just-in-time delivery Japanese suppliers may use technology shared Supplier Dilemma by Boeing to eventually design their own airplanes. Best Aircraft Strategies 787 Dreamliner utilize smaller airports Point-to-Point travel United Airlines FedEx (from Airbus) Financial aid in the form of federal research and development contracts from NASA and the Pentagon and tax breaks from Washington State Tightened control over the knowledge it shares with suppliers A380 utilize largest airports Hub-to-Hub travel Air Asia AirBerlin Southwest United Airlines (from A320) Financial support through subsidiaries called launch aid from Spain, France, Germany and Great Britain Suppliers 70% are outsourced from Japan and China

Customers

Government Issues

Point of View

Objectives

- Lessen the delay in outsourcing materials - Implement an effective strategy to compete against Airbus - Have fast & efficient production of materials

Main Problem
How can Boeing company regain their position as the market leader against Airbus? Sub problems: Delays in the construction of airplanes & the necessary things that should be done***
***manpower requirements, materials delay

Situational Analysis
Demographics Political Technological External-General Socio-cultural

United Airlines, FedEx, & US Department of Defense use Boeing aircrafts

Heavily aided by the US government financially for R&D in defense. Federal, state, local levels in taxes & regulatory issues

Strong in R&D, finding ways to lessen fuel consumption. IT, privacy concerns, production, and Internet.

Lessens carbon footprint.

Industry: Competitors
Commercial Planes Airbus The worlds leading aircraft manufacturer whose customer focus, commercial know-how, technological leadership and manufacturing efficiency have propelled it to the forefront of the industry. Embraer Bombardier Is the worlds only manufacturer of planes and trains, weve built an extensive and diverse portfolio of a winning mobility solutions. Everywhere people travel by land or by air, a Bombardier product is ready to transport them

Is one of the worlds leading aircraft manufacturers, a position achieved through the commitment to full customer satisfaction.

Industry: Competitors
Military Aircrafts

Lockheed Martin

Northrop Grumman

Raytheon

General Dynamics

Internal: value chain


Value chain analysis (primary activities) Inbound Logistics Operations
materials handling, inventory control, disseminate materials to a product convert all the inputs provided by the inbound logistics to final product form which is the assembled plane distributing the final product to the customers through shipments strong customer relationship with their connections repair for damages and adjustments

outbound logistics
marketing and sales services

Value chain (support activities) procurement to purchase the inputs needed to


produce (raw materials and machinery)

Technological development Human Resource management


Firm Infrastructure-

used for their research and most especially product design and concept
training employees/laborers and compensation
gain support from government, strong financing performance

Porters 5 Forces
Commercial Airplane Barriers to Entry Threats of Substitutes Buyers Power Suppliers Power Rivalry High Medium High Medium High Military Aircraft High Medium Medium Medium Medium

Major competitor: Airbus


Formed in 1970 in Europe From a Fledgling to a Formidable Opponent Since 2000 Airbus has been the number 1 in sales In 2005, achieved a 51% share of global market They focused on the needs of the market, a standard product line, efficient production methods, and successful marketing ploys. They established a significant market share and a brand name by making airplanes that addressed the needs of the market.

SWOT Analysis
Strengths Weaknesses - Largest global aircraft manufacturer by revenue, - Slow to react to market demand orders and deliveries - Complex supply chain - Second Largest Aerospace and defense contractor in - dependence on US government the world - Largest exporter in the US - Strong financial performance - Product diversification - Strong focus in R&D - Strong customer relationship

Opportunities

Threats

- Emerging markets - Expanding in the south east - International travel growth - Rising defense spending in the US

- Airbus (competitor) rising fuel costs - slowdown in commercial jet planes

Alternatives
Set new strategies for sub problems: to reconstruct an effective scheduling for production to avoid delays hire manpower and to maintain a targeted time to have a fast production and avoid delays.

Criteria
- avoid expense - fast and efficient strategies - doable for big business production - can be maintained for a long run

Recommendation

Set new strategies: to reconstruct an effective scheduling for production (ex. making a gantt chart).

Lessons Learned

Time management Strategies

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