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Strengths

•     Strong global network


•     Broad product line that covers most major market niches / R&D development
 Weaknesses
•     A hierarchical, ridged, and semi- autocratic management style, which is a product of its military
heritage.
•     Labour problems.
•     Dependence on US government and WTO-incompatible subsidies.
Opportunities

•     New aircraft to gain market share


•     Increase demand for point to point routes
     Threats
•     Slowdown in the commercial jet market
•     Uncertain airline industry environment

Strengths

 Largest global aircraft manufacturer by


Weaknesses
revenue, orders and deliveries, and the second-
largest aerospace and defense contractor in the
 Internal policies and procedures
world
 Slow to react to market demands
 Efficient design and production systems
 Largest exporter in the United States -
%u2022 A hierarchical, ridged, and
providesleverage with US government
semiautocratic management style, which is
 Product diversification (customer and a product of its military heritage.
commercial financing, information space and
defense systems, and commercial aircraft)

Threats

 Airbus (key competitor) being


subsidized by European common
market
Opportunities  Boeing competing head to head
dwarf masturbation*** with Airbus in the world market
 Further focus on refurbishing vs.
buying new planes across the
airline industry could impact
demand

Strength Weight Ratin Weighted


g Score

1. Boeing is the world’s leading manufacturer of commercial 0.10 4 0.40


aircraft with 60% of the market.

2. Boeing is one of the largest U.S. exporters with over $ 10 0.08 4 0.32
billion in sales to foreign countries.

3. Boeing 737 is the best-selling commercial aircraft of all 0.07 4 0.28


time with 3 604 orders and 2 840 deliveries.

4. Boeing has been successful in teaming with other 0.08 4 0.32


defense and space companies and its business in this area
is widely diversified.

5.Boeing 777 is the most spacious, fuel-efficient airplane in 0.06 4 0.24


its class.

6. In 1996 the number of orders of jet crafts is two times 0.08 4 0.32
bigger than in 1995.

7. Boeing’s net income moved up 179% in 1996. 0.08 4 0.32

8. Defense and space business’s operating profit increased 0.08 4 0.32


by about 269% in 1996.

9. Boeing is the world’s leading producer of military aircraft. 0.09 4 0.36

10. Mergers\ acquisitions have given Boeing a greater 0.08 4 0.32


share of the military and space market.

Weaknesses

1. Long-term dept increased by 70% in 1996. 0.05 2 0.10

2. Backlog of unfilled orders at December 31, 1996 was $ 0.07 1 0.07


87 700 million.

3. Boeing’s civilian sales are driven by economic cycles- 0.04 1 0.04


‘’feast’’ or ’’famine’’.

4. Boeing’s military sales are driven by external threads and 0.04 2 0.08
politics.

TOTALS 1.00 3.49

SO Strategies
1. Increase international aircraft exports 10% annually. (O2, O3, O6, S1, S2)
2. Increase sales by improving and modifying present products or services and adding
new related products. (O1, O3, O4, O5, O8, S3, S4, S5)

3. Introduce present products or services into new geographic areas by opening


facilities in different countries and add new related products or services. (O3, O8,
S1, S2, S4)

4. Create a merger with another defense and space company for a successful
cooperation in the field of military and defense. (O7, O8, S9, S10)

WO Strategies
1. Increase sales by improving and modifying present products or services in order
to reduce long-term depth. (W1, O3, O4, O8)

2. Restructure to have three divisions- commercial aircraft; space and defense


systems; customer and commercial financing. (W2, O4)

3. Implement military aircrafts in everyday life (rescue operations, fires). (W4, O8)

ST Strategies
1. Introduce present products or services into new geographic areas (S1, S2, S9,
T3, T4)

2. Seek to increase market share for present products or services by improving the
quality and adding new related products. (S1, S2, S4, S9, T2)

3. Create a partnership with another company for a successful cooperation. (S4,


S10, T5)

WT Strategies
1. Introduce aggressively present products or services into new geographic areas.
(W1, W3, T2)

2. Modify structure to move international operations to other divisions and split the
orders. In this way delays will be reduced. (W2, T1)

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