Strategy Formulation and Implementation (TMGT 578)
Boeing is a huge company with a myriad of divisions. The focus of this project is on Boeing's commercial airplanes division only. The plan is to enter the market with a unique strategy that will delight the current customer's needs so as to make Boeing recapture the market lead. This will make Boeing more competitive and keep ahead of its main rival Airbus by producing low-maintenance and fuel-efficient planes. Boeing must think of ways to lower their costs as well as their customer's cost.
This year Airbus Industries for the first time will deliver more commercial aircraft than Boeing Commercial Airplanes – perhaps 280 to Boeing's 265 to 275. 'The key issues in 2003 won't be orders or deliveries but the longer-term evolution of air carriers as they restructure, and the long-term strategies of Airbus and Boeing as they position themselves for the inevitable and eventual upswing in air traffic-. (Wilhelm, 2003, Par. 2).
Boeing must pay more attention in their strategic planning outside the US to be competitive with Airbus. Concentrating on more than one aspect of what the customer wants, Boeing should pursue fuel-efficient plans with a wide range of small, large, long-range, and short-range plans. .
Boeing must be careful of what technology to have in their planes; the latest technology may not sell planes. One of the advantages of the Airbus line over Boeing is that the cockpits of the models are similar, thus allowing crews to easily fly all the models in the Airbus series without extensive retraining of the crews.
Boeing must consider more than just what the airlines need in the near future but external pressures and events must be taken into consideration. The September 11 unexpected attack must be a reminder to Boeing.
What we want to achieve by this plan is to meet the expected long-term growth rate of air traffic and at the same time be ready in case the aviation industry does not bounce back quickly because of a stagnating economy and if passengers remain afraid of terrorist acts.