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Threats Opportunity
ANS: Boeing was already a struggling organization in 2004. Distracted by the acquisitions of
McDonnell Douglas and Rockwell Aerospace in 1996, Boeing's top managerial agreement had
spent the next few years strengthening the company's traditionally poor aerospace and defense
role and permitted its conventional commercial aviation skills to deteriorate. Boeing, once the
world's engineering wonder, now invested 10 percent –20 percent more than EADS (Airbus) to
build an aircraft. And the prices she demanded for her planes were also higher. As a result,
Boeing's estimated market share of the commercial market decreased from almost 70% in 1996
to less than half by the end of 2003. The board accepted the strategic decision in December 2003
to introduce a new commercial airplane, the Boeing787, for sale to airlines. The 787 was an
aircraft of a medium, and not a jumbo jet like the A380. The 787 would carry between 220 and
250 passengers but would use 20% less fuel and be 10% cheaper to fly than its rival, the existing
EADS intermediate aircraft, the smaller wide-body A330-200.
Q5: Based on SWOT analysis, what strategy you suggest for Boeing Company?
Ans: Based on the SWOT study, I wish to recommend a cost-control approach for them. They
can also outsource their manufacturing process for costs saving purposes and sell their product
than rivals at the lowest possible cost. This also lets them achieve simultaneous economies of
scale and also reduces the risk of loss to the highest level.