Case Study on Boeing Essay Example | Topics and Well Written Essays - 2500 words

Case Study on Boeing - Essay Example1. Boeing Corporations forwarding looking market strategy is based on assumptions well-nigh the air travel market and the equipment (aircraft) needed for continued growth. Boeings projections assume that the current give-up the ghost of aircraft will need to be upgraded and retained or replaced. The current fleet consists of 17,330 aircraft. By 2025 the fleet will have an estimated 35,970 aircraft consisting of 27,210 new or replacement aircraft, and 8,760 retained aircraft. Future growth and the need for replacement aircraft will drive the aircraft industrys free-enterprise(a) market (Showronski, p1). Boeing will need to be able to provide new aircraft that atomic number 18 two efficient and economical. Boeings new large aircraft segment is marketing both one and two aisle airplanes with the focus on the new 747-8 Intercontinental and 747-8 Freighter aircraft. This is in contrast with Boeings point to point strategy that focuses on small airc raft that serve the design of moving people and cargo from one point to another rather than to a central location where cargo and passengers would deplane and board a smaller plane to reach their destination (hub and spoke strategy). Boeings successful market entry of their 747-8 Freighter and 747-8 Intercontinental aircraft prove that Boeing can compete in the larger aircraft market. Boeings startle customer was Lufthansa who ordered 20 of Boeings 747-8 Intercontinentals (Showronski, p1).Boeings success, using the point to point method of getting passengers to their destinations, is based upon the idea that passengers prefer the shorter travel times that point to point function offers. Boeing offers the airline industry aircraft that are best suited to point to point travel. These aircraft are typically larger than those used in the in the typical point to point market. Boeings current strategy includes gaining a large portion of the intercommunicate 2.6 trillion in airplane in vestment opportunities over the next twenty years (Showronski, p1). Boeings leadership believes that by entering the large airplane sales and service market they are positioning themselves to be leaders in the industry by providing an aircraft that will best tinct the needs of customers. Boeings current strategy likewise includes continued sales and service of five other sizes of aircraft to serve the point to point market. It is hoped that carriers will continue to choose Boeing aircraft as aircraft of choice for their business. Boeings five sizes of aircraft are designed to meet all aspects of the point to point market with carriers that have 200 seats up to carriers that seat 467 passengers. Currently Boeing is the only one in its industry with an airplane that can drive more than 450 passengers at a time (Point-to-Point, 2006). The 747-8 is used primarily by carriers that offer long range high density routes (Point-to-Point, 2006). The 747-8 is designed to be a replacement fo r older 747s that will be phased out of service during the next twenty years (Point-to-Point, 2006).With Boeings entry into the large carrier market came requests for an airplane that was environmentally friendlier than its previous airplanes. The 747-8 was created with environmentally friendly features. The 747-8 uses less fuel and produces lower carbon dioxide emissions (Point-to-Point, p2). Also, the 747-8 makes 30% less noise on take-offs (Point-to-Point). Because Boeing