Boeing Case Study

Table of Contents

Background and Problem Statement………………….……………………………………………………………….……3

Analysis of the Problem……………………………………………………………………………………………………….…..3

Alternative Solutions…………………………..…………………………………………………………………….……….…...4

Criteria to Evaluate Alternatives…………………………………………..…...................................................5

Recommendations for Plan and Implementation……….…………………………………………….……….…….6

Background and Problem Statement

In 2004, Boeing was one of the world’s largest aerospace companies. For decades it had dominated the world’s commercial aviation market. But the airline industry was taking simultaneous blows from terrorist attacks, rising fuel prices, consolidation, and increasing competitive intensity. In 1999, its main rival, Airbus, outsold Boeing for the first time, and in 2003 Airbus delivered more airplanes to its customers. In addition, airlines in the United States, which made up a large part of Boeing’s customer base, were undergoing fundamental changes as they focused on cost structure and consolidation, and increasing operating efficiency became the means for survival. The combination of terrorist attacks and the underlying cost shortcomings of the industry caused several airlines to either go bankrupt or be on the verge of bankruptcy. The biggest challenge that Boeing had to face was differentiating its product from its biggest competitor, Airbus.

Analysis of the Problem

This biggest problem that Boeing has to overcome is differentiating itself from its competition, especially Airbus. The market had matured and you could clearly see a difference between Boeing planes and Airbus planes. So in June 2003, Boeing launched a new strategy that would help the airline customer’s improve their efficiency and profitability and also differentiate its products in the market place. The idea was to create and take advantage of an e-Enabled operating environment in which every...