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The Boeing Company

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  • Transcript

    • 1. The Boeing Company Seraj A. Farooqui Business Marketing & Logistics 780 February 2012 Copyright © 2008 the Boeing Company. All rights reserved
    • 2. The Boeing Company World’s premiere producer of commercial airliners.  Leading innovator for aircraft technology, sourcing, and design. Only large commercial jet manufacturer within the United States  Strategic approach to mergers/acquisitions.  McDonnell Douglas-Boeing Merger (1997) Copyright © 2008 the Boeing Company. All rights reserved 2
    • 3. The Boeing Company Multinational Aerospace and Defense Industry Seattle, Washington 1916– William E. Boeing  B&W Model 1 Float Plane Current HQ– Chicago 2010 Revenue: ~$64 bil. ~170,000 employees (2011) Customers in 150 countries Copyright © 2008 the Boeing Company. All rights reserved 3
    • 4. Boeing’s Approach To Segmentation Three business segments: Copyright © 2008 the Boeing Company. All rights reserved 4
    • 5. Company Market- BDS Military vehicles, weapons or systems  Logistical, technical and training support 3rd largest defense contractor in the world Primary Competitors  Lockheed Martin, BAE Systems Global Strike, Mobility, Surveillance, Missiles/Unmanned Systems product categories Copyright © 2008 the Boeing Company. All rights reserved 5
    • 6. Boeing Defense, Space & Security F/A-18 Super Hornet Outsourcing part of strategy  Gun bay doors: Hindustan Aeronautics Limited and Bharat Electronics Limited (India) Emphasis on domestic sourcing  Collaboration with domestic suppliers: Raytheon (radars), General Electric (engines) Internal technology applications  In-house production/design of “Distributed Targeting System” Copyright © 2008 the Boeing Company. All rights reserved 6
    • 7. Company Market- BCA• Design, assembly, marketing and sale of large commercial jet aircrafts• Primary Competitor- Airbus S.A.S.• Defined/innovated modern jet-liner• Prominent Models – 737, 767, 777• 12,000 airliners in service Copyright © 2008 the Boeing Company. All rights reserved 7
    • 8. Boeing Commercial Airplanes 787 Dreamliner Strategic focus on outsourcing, composite assembly Major components produced abroad  Wings: Mitsubishi, Kawaski, Fuji Heavy Industries (Japan)  Fuselage: Global Aeronautica (Italy) Wings and fuselage assembled in South Carolina  Vought Aircraft, Boeing subcontractor Final assembly: Boeing Everett Factory, Everett, Washington  Largest building in the world by volume Copyright © 2008 the Boeing Company. All rights reserved 8
    • 9. The Marketplace Characterizations:  Extremely competitive  High start-up costs  Long production runs  Limited number of buyers  Extremely sensitive to the economy  Release of economic indicators result in capacity and production cut-backs. Copyright © 2008 the Boeing Company. All rights reserved 9
    • 10. CompetitorsAggressive international competition from companies such as Airbus, Embraer, Bombardier, and other entrants from Russia, China and Japan. Copyright © 2008 the Boeing Company. All rights reserved 10
    • 11. Airbus (Airbus Industrie / EADS) Primary competitor Founded in 1970 as a government entity that includes four countries: British Aerospace, DaimlerChrysler Aerospace (Germany), France’s Aerospatiale, and Spain’s Casa. EADS swung to a profit of 553 million euros ($768 million) in 2010. Copyright © 2008 the Boeing Company. All rights reserved 11
    • 12. Marketshare Market share measured by (1) share of overall sales, and/or (2) share of manufacturing orders relative to competing firms. Copyright © 2008 the Boeing Company. All rights reserved 12
    • 13. 2011: Airbus vs. Boeing Historically, Airbus has been considered a distant second in market share to the 60 percent of Boeing. In 2011, Airbus captured roughly 64% of manufacturing orders – marking a 40-year-low for Boeing in this rivalry. According to The Wall Street Journal, “the gap in the dollar value of the two companies sales is closer than their order totals suggest.” Based on data published the companies, the average catalog price of Boeing planes ordered last year was roughly $145 million, while the Airbus average through November was roughly $105 million. Copyright © 2008 the Boeing Company. All rights reserved 13
    • 14. Competitive StrengthsThe Boeing Company Airbus Industrie Ability to leverage its  Boasts an efficient extensive customer production line that support services network. allows them to trim the  Network includes aviation total cost of their support management, airliners. training, maintenance  European subsidies that documents and technical allow them to underbid advice. Boeing. Business segmentation  Growth barriers make it allows them to share difficult for strategic costs of technology, mergers/acquisitions to employees, and research increase market share. between businesses. Copyright © 2008 the Boeing Company. All rights reserved 14
    • 15. BCA Factors Economically Sensitive Unforeseen Events Fuel Costs Copyright © 2008 the Boeing Company. All rights reserved 15
    • 16. BDS Factors US Department of Defense  Negatives  Highly Dependent  Competitors  Positive  Middle East Dispute  High returns Copyright © 2008 the Boeing Company. All rights reserved 16
    • 17. Recent Activity Airbus Faults Internal Efficiencies New products Copyright © 2008 the Boeing Company. All rights reserved 17
    • 18. Strategic Opportunities Synchronize supply chain resources  Combine resources and tools of BCA and BDS Decrease the spread of risk  Outsourcing in design, manufacturing, etc.  Minimize use of outside suppliers on 787 and new 737 Expand manufacturing facilities  Decrease number of planes on back order  Increase production efficiency Copyright © 2008 the Boeing Company. All rights reserved 18
    • 19. Strategic Challenges Long Backorder for BCA Changes in air transportation Uncertain future in defense needs Return to core-competencies  Accounting to Innovation Copyright © 2008 the Boeing Company. All rights reserved 19
    • 20. Thank You Copyright © 2008 the Boeing Company. All rights reserved 20