strategic analysis boeing

Boeing

PGDM BGroup # 13

Five Forces

Threat of New Entrants• High Capital Investment• Technology• Lead Time• Government Barriers• Availability of large market• Economies of scale and scope

Five Forces

Threat of Substitutes• High Speed Bullet Trains• LeasingBargaining Power of Suppliers• Less number of buyers• Global Outsourcing• Technological Expertise

Five Forces

Bargaining Power of Buyers• Switching Costs• Low Cost AirlinesCompetitive Rivalry• Duopoly

Strategic Groups

Boeing & Airbus

Bombardier , Embraer,

Mitsubishi, China

External Analysis

• Duopoly • Airbus – Heavily subsidized• Boeing’s aid from government – Federal R&D

contracts from Pentagon and NASA• Tax breaks• Strict US Laws - FCPA

Internal Analysis

• Much diversified portfolio built around the competency of aviation designing

• Commercial & Military Aircrafts, Missiles, Satellites, Wind Turbines etc

SWOT ANALYSIS

Value Chain Analysis

• Boeing Capital Corporation• Lean manufacturing• Advancing Aviation Performance Programme,

MyBoeingFleet Web portal

Tetra threat Framework

Response to Imitation• Most credible threat – China• Years of experience in military aircraft• Government support – Capital, Assured

market• Integrated player• Large domestic market• Technology Transfers• Response - IPR, Brands, Lead Time

Response to Substitution• Boeing Available Aircraft

Response to Holdup• Outsourcing Strategy• Dream liner – 70% of the components outsourced• Offset Agreements• Best in breed technology at low cost• Core-competency being diluted?• Delays, cost overruns, complex supply chain • Loss of jobs in America, opposition from engineers

Threat of Slack• Ethical Issues• Labor Unions - Transferred production from

Washington State to South Carolina(Right to Work State), Presidential election topic

• Culture Clashes after mergers – McDouglas defence company, lost focus on commercial sector

Core competencies

• Offset agreement (outsourcing)• large-scale implementation systems & R &

D(unique knowledge of wing technology and new lightweight composites)• Strategic partnership with NASA, and The

United States Air Force