Boeing has proved a strategy that could sustain their organization for many long years ahead, while having a competitive advantage in the airline industry especially to compete with Europe’s Airbus.Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group.In the 1980s alone, Boeing received orders for more than 3,500 jet liners, which represented half of all jetliners sold by Boeing since the first 707 order was placed in 1956, and in 1987, the 737 surpassed the 727 as the world’s best-selling jetliner.Since the safety of the aircraft is being questioned from time to time, resear...
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Further, Boeing designed its e-Enabled Advantage to be independent of airplane manufacturer that is it would work on both Boeing and Airbus plane; there by Boeing created for itself a large market of both new and old Boeing and Airbus airplanes.Boeing faced the task of figuring out how to separate the value created by its airline services from the value created by the airplanes themselves; it was important for Boeing to establish that its e-Enabled platform had the potential of improving the day to day operations and performance of its customers business.By early 2000s it was clear that airlines survival was largely dependent on increasing operational efficiencies and Boeing launched the e-Enabled Advantage strategy to use IT to drive co...
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Furthermore, the author mentions that besides Boeing becoming a potential competitor of IT companies such as Oracle and IBM, it also faces competition from Airbus.Moreover, the author should try as much as possible to apply knowledge from outside sources in order to make the case review more analytical rather than descriptive.Case 807-011: Boeing’s e-Enabled Advantage.In this regard, the author fails to give an adequate analysis of the information derived from the case besides neglecting to apply any theoretical knowledge in supporting the arguments presented in the case review.Applegate, M.L.
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Boeing’s e-Enabled Advantage .Why did SYSCO decide to initially address only two questions with its new BI software, rather than using it as a more general analysis tool in the operating companies?What principles did it employ as it built the newly-fashioned supply chain?What is the e-Enabled Advantage?What challenges and opportunities did Boeing face in the late 1990s?
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Technological Factors – From a technological standpoint, Airbus established a competitive advantage over Boeing as they frequently implemented the use of computers in the design and manufacturing of their airplanes.Airbus began manufacturing the A-300 series which enabled them to capture 10% of the market share by 1975 (ref article), no small feat considering they were competing against the giant Boeing.Supplier Power – As Boeing and Airbus are the two main manufacturers of aircraft they maintain some power, but as the airlines have a choice as to which firm to purchase from, the balance of negotiating power lies with them.Threats: Airbus’ main competitor is Boeing who has shared market lead with Airbus on and off over the past decade or...
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What are the pros and the cons for establishing a limited list of general purpose software products that employees may use within Boeing?Here Boeing purchases Microsoft Office for personal productivity word processing, spreadsheet, presentation, and data analysis software; Adobe for digital media creation and editing, and AutoCAD for computer assisted design.While almost all of the application-specific software employed by Boeing in managing the enterprise comes from commercial software development companies, including: SAP, Siebel (now part of Oracle), Computer Associates, IBM and others, some software, employed to design and manage the production of spacecrafts, missiles, and military aircraft for example, must be developed internally ...
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Political factors: Boeing and Airbus have been favored by the political climate in the countries they are established.Several advanced models of Boeing and airbus continue to be made to suit the demand in the market (Billings, 1997).Airbus has increased its competitive advantage by marketing its products strategically and in the year 2000s the company has overtaken Boeing in most of its activities (Drejer, 2002).Boeing and airbus have been given contracts to manufacture military aircrafts and other machines.Boeing Airplane Company, United airlines and United Aircraft Corporation were established after Boeing was split up.
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Weakness – The things which are an advantage of the competitor and a disadvantage to our organisation.The porter’s five forces are: Existing rivalry among firms Threat of new entrants determinants of supplier power Determinants of buyer power Threat of substitute products Example: AIRBUS The porter’s five applied to the Airbus aviation company who have been the most influential carriers of all time apart from Boeing.The A380 has an excellent performance with regardless of its massive size the jumbo jet can people double the time the Boeing 747 used to carry.The PESTLE Analysis The most important tool of strategic planning is the PESTEL analysis.The Boeing 747 was a fuel efficient and economically well versed passenger and good carrier ai...
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The main benefits the Boeing 787 offers to airlines is reduced operating costs, increased revenue, and a competitive edge.The Boeing 787 has been one of the most successful aircrafts in the twenty first century because of its technological advancement that offer numerous benefits to both airlines and their customers.Norris, G & Wagner M 2009, Boeing 787 Dreamliner, Zenith Press, Minneapolis, MN.Boeing gives airlines an edge over their competitors by providing customers with a high level of comfort that has never been witnessed in any other airplane.Norris, G, Geoffrey, T, Mark, W & Christine, FS 2005, Boeing 787 Dreamliner: flying redefined, Aerospace Technical Publications International, Perth.
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While some see the Boeing 787 Dreamliner as a outsourcing fiasco, it has proved the opposite.While the risks could have been mitigated with a bit more planning and oversight, it has given Boeing the advantage it needed to edge out its competition and secure enough orders for its aircraft to ensure economies of scale will make the 787 profitable.In the future Boeing should give exact product dimensions to the suppliers to prevent this (Hiltzik, 2011).How should Boeing respond to critics claiming, it is exporting American Jobs overseas?Boeing can easily rebuttal these claims, to show that proceeding with its outsourcing plan, has for the first time in a decade enabled them to surpass its main rival Airbus.
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Boeing (2005): The Boeing Company.Boeing: Japan 7e7 suppliers to also design, fund parts.(Boeing 2005) .Gibbs, E. (2004).Source; Gibbs, E. (2004): Boeing: Japan 7e7 suppliers to also design, fund parts.
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Boeing 777-200LR .Boeing 737-300 .Boeing 777-300ER .. PIA has a vision to be a world class airline, meeting customer expectations through dedicated employees excellent service, on time performance and customer safety.Boeing 777-300ER .Boeing 747-300 .
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Boeing 777-300ER .. PIA has a vision to be a world class airline, meeting customer expectations through dedicated employees excellent service, on time performance and customer safety.Boeing 777-200LR .Boeing 777-300ER .Internet reservation key system role in e- ticketing as customer can easily reserve tickets and check the status of the flight.PIA was the first airline in the Pakistan to introduce and installed e ticketing followed by the market leader.Boeing 747-300 .
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However, from the aforementioned resources this competitive advantage for the Qantas Group as a whole is unsustainable.By applying the VRIO framework to Qantas we can observe that not all resources sustain a competitive advantage.Qantas has been purchasing Boeing aircraft makes like the 747-400.However, air travel has the absolute advantage in terms of time.By having these “two brands” the Qantas Group is able to assess different market opportunities and deploy the best product to suit the opportunity and specific market conditions this also creates a competitive advantage.
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In 2010 the Indian government also forwarded a tender to the Boeing company which resulted in the sales of eighteen Boeing 777and twenty seven 787 Dreamliners to Air India Company.Boeing has been also protesting over the aid provided to its competitor Airbus in terms of long term credits, whereas Airbus has its statement that Boeing has been receiving subsidies through military and research contracts and tax breaks that are totally illegal.The Boeing Company started initially as Pacific Aero Products Company and then William E. Boeing, the founder of The Boeing Company incorporated it on 15 July 1916 in Seattle, Washington.The Boeing Company’s major competitor Airbus criticizes the company’s policies for the subsidy contracts from the US...
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By 2002, it had become one of the largest airlines in the United States but its growth strategies were firmly aligned to the original business model of short-haul, point-to-point flights, a fleet consisting only of Boeing 737s, high frequency flights, low fares and no international flights.As a result the company has managed to develop a human capital that has served as a source of sustainable competitive advantage.This segmentation enabled the company to conduct target marketing effectively (cited in Dess, 2007).European Journal of .Strategic Management: Creating Competitive Advantage .
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Lastly, aviation analysts argue that Southwest’s point-to-point scheduling of flights has been instrumental in ensuring that operational and maintenance costs remain down, hence providing the airline with a competitive advantage over other airlines that continue to use the hub-and spoke systems (Wright & Mujtaba, 2011).To implement and execute this strategy, therefore, the company only uses one type of aircraft (Boeing 737) to keep maintenance costs down and benefit from acquiring the fleet at hugely discounted prices, not mentioning that Skywest was the first to employ the e-ticketing strategy with the view to minimize operational and labor costs (Thompson et al., 2011).Crafting and executing strategy: The quest for competitive advantag...
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These strategies of Boeing to achieve competitive advantage differentiate it from its competitors and bring at the top of aerospace industry.Boeing also uses CAD and CAM to design and produce their aircraft, such as the B-777 (Making of the Boeing 777, n. d.).So this new product development and wide range of product family provides their customers a variety of options and fulfil the customer’s need that lead to competitive advantage for Boeing.Boeing is divided its operations into two business units (1) Boeing Commercial Airplanes (2) Boeing Defence, Space & Security.“As part of the continuous improvement cycle, Boeing has four initiatives designed to support customer, competitive analysis, corporate direction and Boeing operational ...
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British Airways’ SCM strategy can be performed well due to the support of Boeing Company that supplies most of aircraft equipments.On the other hand, companies that failed to take advantage of innovation in technology will be left behind.In December 2005, the company operated over 250 commercial aircrafts around the world consists of Airbus and Boeing.In terms of size of company, British Airways has the obvious advantage since it is the largest airline in United Kingdom and the second largest airline across Europe.However, the accident has driven airlines to deploy small airplanes such as Boeing 737s or Airbus A320s.
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Unknowns: not enough analysis done to guarantee that the new purchased system would meet all the functional requirements for the integration of system application already in place; 7.Boeing Australia Limited (BAL) is relatively new company and a global extension of the US firm, the Boeing Company.Cons: the risk of waiting for the low- cost solution will involve losing current suppliers and not having correct data available for current state analysis and reporting.Qualitative Analysis: .Environmental and Root Cause Analysis .
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Some airplanes they manufactured were also said to be inefficient but that did not stop them from producing more of those aircrafts which led to the belief that they are out of touch with their customers.In streamlining their core processes, Boeing adopted simpler procedures for configuring aircraft to specifications, scheduling, ordering parts and managing inventory.The Boeing Company is a major aerospace and defense corporation, originally founded by William E. Boeing in 1916 in Seattle, Washington.Also, their frequent change of leadership could be considered a weakness as that makes them frequently go back to the drawing board to re-strategize.In launching the aforementioned integration and innovative technologies, Boeing needed high ...
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DeHavilland pioneered the innovation, although the company was in stiff competition with American manufacturers Boeing to introduce the new technology.Artto, KA 1997, Managing risks in projects, E & FN Spon, London Cox, LA Jr 2008, ‘What’s wrong with risk matrices?’, Risk Analysis, vol.The company has since emulated the structure and characteristics of the Boeing and reproduced the Comet 4.Its main competitors, the Boeing and DC-8, carefully took up the technology but avoided committing the same results that its pioneer, Comet, committed.The more reliable aircrafts have eliminated all the safety failures that were contained in the previous Comet designs, and consequently replaced them with security and safety features contained in the Bo...
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The 787 has more foreign-made content 30% than any other Boeing plane, according to the Society of Professional Engineering Employees in Aerospace, the union representing Boeing engineers.Boeing and Airbus seek to exploit this by subcontracting production of aircraft components or assemblies to builders in countries of strategic importance in order to gain a competitive advantage.The Leadership Team sets strategic direction through Boeing Combined Planning Process .This grouping of processes focuses on developing and implementing strategies that use Being’s Vision and Values to enhance customer satisfaction, improve processes, and increase Boeing market position.This builds a strong competitive advantage, as it informs the customers that...
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The advantage of a local and highly identifiable market is that media selections can be limited in scope.This was followed by the addition of a leased Boeing 707 in 1971.Entertainment and communication in-flight systems are major advantage of Turkish Airlines.The fleet also included 11 Boeing 727s and nine DC-9s.Substantial cost advantage over rivals; .
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Moreover, the firm is in a position to share expertise and knowledge on aircraft maintenance with Boeing (Payler 2015).In addition to the above aspects, the company collaborates with Original Equipment Manufacturers [OEMs] such as Boeing in its aircraft maintenance process.The approach accentuates that firms can derive competitive advantage from optimal utilisation of the internal capabilities and resources.This move has enabled the company to develop an effective working culture.Sahaf, M 2008, Strategic marketing; making decisions for strategic advantage, PHI Learning, London.
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This is a complex analysis which involves matching external possibilities with internal capabilities.SWOT Analysis is the steps to assess internal performance and external operating environment.For the aircrafts, many airlines choose Boeing air plane whereby AirAsia built a strong relationship with Airbus in order to get discounts on fuel efficient new planes which can implicitly reduce costs for the fuel.Retrieved 10 January, 2011, from .Air Bus is also a major competitor of Boeing in gaining market share.
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Also the company has cost advantage, because of its ability to achieve 25 minutes turnarounds and therefore can run two more flights a day in its schedule than rivals such as British Airways.While the market and environment establish external constraints and pressures, a firm’s response through resource allocation and capability development become a source of competitive advantage.If most companies in the same industry report decrease in profits, Ryanair’s financial performance indicates that the company is in competitive advantage.-Has first mover advantage on regional airports (e.g.-Modernized fleet which leads to less expensive maintenance: Will become more uniform with only one model (Boeing 737-800), also newer planes will require l...
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They further acquired a large customer base which increased their market advantage.Along with theses internal and external factors that enabled Easy jet to be the ‘flying brand’ there were opportunities from the immediate environment that boosted Easy jets’ performance and threats that suppressed its growth potential.The Internet enabled the market to operate at its own model.EasyJet makes its savings from customers’ bookings which have enabled the company to offer at least £1 off to passengers who do their bookings online on the part of online proposition.Easy jet was passionate about who they were and who they were going to be in the minds of the stakeholders and delivered a service with no compromises, that was based on teamwork that ...
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Airbus makes bigger jets and Boeing makes smaller jets.Change of Aircraft Supporting: Boeing has decided to fold up the production of Boeing 757, while Boeing 717 and 767 are on lifeline.Columbia Shuttle Tragedy: The name of Boeing suffers drawback every time the tragedy is re-called because Boeing is a very special part of United Space Alliance.The Boeing company and government have long complained that Airbus has ignored the 1992 bilateral agreement, which is one of the key agreement, which says that launch aid will be available to Airbus till it’s in the level of its competitor Boeing, but that is no longer the case with Airbus having 52% of the market share.Boeing needs to overcome the situation and regain their position in the marke...
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The airline’s fleet is consist of Boeing 737, the most common aircraft being used by most of the carriers at present.With its negative net order book this year and a customer that is arguably too big to lose, Boeing may be more willing to deal than Airbus.In a fast-changing environment where technological innovations and other strategies can be copied, it is the human resources that bring a sustainable competitive advantage.• productivity and managed marketing costs .. • Only one kind of plane (Boeing Planes) .Talks with Boeing have reportedly been scheduled for late Summer.
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