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ower ?Key Force: Intensity of Rivalry. ?Airbus and Boeing control the Aircraft industry, Embraer as a potential emerging petitor. “If you don’t take care of your customers….someone else will” Military amp。s largest aerospace and Defense Company. ?Boeing has customers in more than 90 countries around the world. ?Boeing employs more than 158,000 people across the United States and in 70 countries. ?Boeing operates three divisions: ? mercial airplanes ? Integrated Defense Systems (IDS) ? Boeing Capital Corporation (BCC) ?In 2020, the firm generated $ billion in revenue and $ billion in ine. ?Boeing’s newest airplane is the 787 Dreamliner. ?Competition: Airbus industries of Europe. CommercialAirplanesIntegratedDefenseSystemsBoeing CapitalCorporation Factor Trend Evaluation Impact (1=low 5=High) Rank in term of importance Political WTO trade restrictions in the aircraft industry. WTOlaws and regulations prevent Boeing from government assistance Threat Threat 4 4 2 Economic Exchange rates favoring US exports. Economic Recession Opportunity Threat 3 3 3 Factor Trend Evaluation Impact (1=low 5=High) Rank in term of importance Social AntiUS feelings due to the foreign policies will affect business in countries of the Middle East. Threat 2 4 Technological Boeing has developed sophisticated technologies that provides distinct safety advantages. Use of new technologies in the form of robotics that help build aircrafts faster Lighter material in aircrafts Opportunity Opportunity Opportunity 5 5 5 1 ?Boeing’s Buyers ? Airlines: Commercial aircrafts ? US Governments: Military aircrafts, global services and support, and work and space systems. ? Global based buyers: Customers in more than 90 countries. ?Boeing’s Suppliers ? Global based suppliers: Contracts with 22,000 suppliers and partners globally. ? Engine manufacturers represent the single most significant group of suppliers: ?General Electric, Pratt amp。 largest NASA contractor ? Integrate largescale systems。D initiatives by establishing relationships with universities in the UK (Cambridge, Cranfield and Sheffield ) to seek the best technologies and acquire talent. Boeing focuses on differentiating its products due to the petition. No Frills Low Price Hybrid Strategies Destined for Failure Focused Differentiation Perceived Service Benefits Price Market Peration Product Development Market Development Diversification Existing Products New Products Existing Markets New Markets Market Peration: Boeing should keep maintaining or increasing its market share of current products. Market Development: Boeing can achieve this by keeping its differentiation strategy to access new geographical markets Boeing Value Chain Component Manufactures Subsystem Manufacturers Engine Manufacturers Airframe Manufacturers Airlines Competition/ Market Absorption Capacity Demand Control Survival Competitive Position of Value Chain 0%5%10%15%20%25%30%35%Series 1 Series 1?New Airplane deliveries for 20202028 ?AsiaPacific as Boeing’s biggest market 31% ?Boeing Business Model ?Design, assemble and support mercial jetliners ?Design, assemble and support defense systems ?Design and assemble satellites and launch vehicles ?Integrate largescale syste