Boeing

PGDM B Group # 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 Leasing Bargaining Power of Suppliers Less number of buyers Global Outsourcing Technological Expertise

Five Forces
Bargaining Power of Buyers Switching Costs Low Cost Airlines Competitive Rivalry Duopoly

Strategic Groups

Boeing & Airbus

Bombardier , Embraer, Mitsubishi, China

External Analysis
Duopoly Airbus Heavily subsidized Boeings 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