Good Boeing Case Case Study Example
The aircraft-manufacturing industry has apparently become very competitive with the passing of time and the continued development of technology. Easy access to information about competitors' moves in the industry is not helping either as it has made it easy for competitors to monitor each other's moves in the market. The increased competition also means increased risks in investing in the industry. This being because the investments are massive in dollar values and, in the event of a failure, the outcome could be devastating to an aircraft-manufacturing company. Despite this, the companies have to keep investing into new models of aircrafts that will satisfy the needs of their consumers. The process necessitates the need for huge investments in research and development to ensure that when a manufacturer comes up with a new aircraft, it has a high probability of success in the market.
Alongside the economic analysis of the project, Mr. Bair had other organizational and strategic considerations that would help influence the board towards the project. Having been a leader in the industry, Boeing was now trailing Airbus. This needed to change, and all that Bair needed was to demonstrate to the board how the 7E7 project would bring Boeing's lost glory back. Apart from being an economic project that would earn the company some returns, Bair needed to convince the board that it was also an organizational strategic move. A move aimed at reclaiming its majority market share that has been taken by Airbus. Given that Boeing 7E7’s specifications were driven by customer requirements, it was in a good position to earn the company a majority market share once more.
Considering that Airbus had already surpassed Boeing’s market share, it was time for Boeing to react in a big way. There was no better way than making the 7E7 project a success. Failure to undertake the project would have amounted to surrendering market leadership of commercial aircraft business to Airbus. The 7E7 project was going to give Boeing a lifeline and a way back into market leadership in the commercial airplane industry. The commercial aircraft segment of Boeing's business was failing, and it is this project that was promising to resurrect it and give it a new lifeline.