Cisco Systems Inc.: Implementing Erp

Founded in 1916, by William Boeing as "Pacific Aero Products Company”, then changed to “Boeing.” Building planes as their hobby; first plane was completed and named B&W used for pilot and airmail. Boeing became the largest manufacturer in the U.S during the First and the Second World War. In 1954, Boeing 707 was launched and successfully entered into commercial aviation. Unfortunately in 1968, Boeing faced crisis in aviation industry downturn resulted in the layoff of roughly 60,000 employees. 1970s, Boeing returned to become a strong leader by releasing several 7-serie models and kept on developing the aircraft. In 1992, it became one of American’s most admired companies.

Industry Analysis: Porter’s Five Forces

Competitive rivalry within an industry: High – The commercial airplane marketplace is duopoly market, only Airbus and Boeing.

Threat of substitute products: Low – The passenger airplane can be substituted by a train, a ship, a car, a helicopter and private jet.

Bargaining power of suppliers: Low –The Company has high power to negotiate the price of supplies due to the global economy of scale. In 2003 Boeing had 10,900 suppliers in more than 66 countries.

Bargaining power of customers: Low - For many years that Boeing has been one of the leading aviation manufacturers in worldwide commercial airline industry.

Threat of new entrants: Low – The new entrants need to invest tremendously substantial amount of money in creating the production of commercial airplane.

What the challenges and opportunities did Boeing faced

Boeing broke its own sales record six years in a row, starting in 1985. The 7-series had been making good sales and in 1989, Boeing announced plans to develop the 777 to be released in 1995.

Boeing’s earning shrank down by nearly half and had to lay off 9,300 of 126,000 employees. Boeing needed to have a new strategy to revitalize its mature market. In 1995, Boeing released the 777 as planned and United Airlines flew the first...