ENTERING FOREIGN

MARKETS
BOEING
Cruising To Higher Altitudes

Presented by Brad, Elin, Haris, Harwinder,

Kelsey, Kyra, Maryam
Agenda
 Topic introduction.
 Background information.
 Company introduction.
 Current state analysis.
 Future considerations.
Boeing’s Business Units

BCA Boeing commercial airplanes

BDS Boeing space, defense & security

BGS Boeing global services

 AS A RESULT
1.
Where To Enter?
Case Study: Boeing’s Market Entry into
Australia (A/P)
 Boeing Australia, is Boeing's largest footprint
outside the United States

 Agglomeration: Location-specific advantages

that occur when economic activities cluster in
a particular location.

 Asia-Pacific region: Strategic advantages

because it accounts for the highest number of
deliveries (17,390/40,000 deliveries).
Matching Strategic Goals With Locations

Boeing has matched its strategic goals with location-specific advantages.

Strategic Goals Location-Specific Goals Boeing Australia

Market Seeking • Strong market demand. • 40% demand in Asia

• Customers willing to pay. Pacific.

Innovation Seeking • World-class innovation • Defense manufacturing

standards and testing facility
Cultural & Institutional Distances

 Cultural: English speaking countries; low context cultures.

 Institutional: Common law legal systems; well established institution.

WHEN TO
ENTER?
First-Mover Advantages
Boeing has benefitted from a first-mover advantage that later entrants do not
enjoy in the Australian Aerospace industry.

Advantages Boeing Australia

Technological leadership. Advanced composite robotic technology with resin-

infused production used at the site.

Relationships with key Australian government (Defense, Space & Security

stakeholders such as platforms including Royal Australian Air Force,

Australian Army and Australian Navy)
governments.
Industry and universities (OAIC - Boeing Office of
Australian Industry capability)
HOW TO
ENTER?
What is an Entry Mode?
Institutional arrangement

How to enter?
Where to
enter?

When to enter?
Scale & Modes of Entry
OLI Framework for BOEING
Boeing has ownership, location, and internalization advantages.
Boeing’s Eclectic Paradigm

O • Specialized subsidiaries,
• Brand Image.

L Close proximity to the world’s largest

commercial aviation markets (China and India).

I
Specialized aircraft parts, proprietary knowledge.
Therefore, in Boeing’s best interest to engage in FDI
rather than license its production line).
Asia-Pacific Region

 Largest region in the world, 60% of

global population.

 21% share of widebody airplanes in

total Asia-Pacific 2038 fleet.

 40% share of all new airplanes to be

delivered to the Asia-Pacific (next
20 years).
Commercial Market Through 2038 By Region
References (APA)
 Boeing Australia. (2019). Australia Operations. Retrieved from
https://www.boeing.com.au/boeing-in-australia/history.page
 Boeing Press Release. (2019, June 17). $8.7 Trillion Aerospace and Defense Market through 2028.
Retrieved from https://boeing.mediaroom.com/2019-06-17-Boeing-Forecasts-8-7-Trillion-
Aerospace-and-Defense-Market-through-2028
 Boeing. (2019). History. Retrieved from https://www.boeing.com.au/boeing-in-
australia/history.page
 Boeing. (2019). Commercial Market Outlook. Retrieved from
https://www.boeing.com/commercial/market/commercial-market-outlook
 Boyd, T. (2019, October 4). Boeing wants to double in size, and Australia is central to its plan.
Retrieved from https://www.afr.com/companies/manufacturing/boeing-wants-to-double-in-size-
and-australia-is-central-to-its-plan-20191002-p52wzg
 Macias, A. (2018, October 9). Boeing cleaned up on Pentagon contracts this summer. Here are
some of the big-ticket buys. Retrieved from https://www.cnbc.com/2018/10/09/boeing-bagged-
billions-in-pentagon-contracts-this-summer.html
 Peng, M. W. (2018). GLOBAL (4th ed.).
 Sampson, H. (2019, August 22). Qantas is testing the new world’s longest flight: 19 hours in the
air. Retrieved from https://www.washingtonpost.com/travel/2019/08/22/qantas-is-testing-new-
worlds-longest-flight-hours-air/
 Walton, J. (2019, June 18). Boeing lifts outlook for commercial aircraft demand. Retrieved from
https://australianaviation.com.au/2019/06/boeing-lifts-outlook-for-commercial-aircraft-demand/
We Are Now Landing. Any
Questions?