strategic analysis boeing
TRANSCRIPT
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