Boeing : Selling a Dream (Liner)

In: Business and Management

Submitted By emnarslan
Words 1628
Pages 7
In the 21st century, any company whose ultimate goal is to achieve leadership within its industry, it is necessary that they think beyond their domestic market and consider global markets instead. By doing this, they need to be able to change or implement their strategy in order to stay as competitive as they were before, form alliances and partners along the way and outperform the competition.

For Boeing, trying to become the global leader in its industry again meant that they needed to launch an exceptional, better aircraft than their competition, Airbus. They were also relying on foreign partners more than ever before to get every part ready in time for assembly. With the launch of their 25th model named the 787 Dreamliner, scheduled for delivery in 2008, Boeing promised to provide airlines with a fuel efficient aircraft and passengers with a modern, convenient airplane that will take them distances in comfort at competitive prices. A potential benefit of this new aircraft was to decrease fuel consumption by 20% making it more environmental friendly with its quieter takeoffs and landings.

The market structure for the Dreamliner has an oligopolistic nature which means there are few aircraft manufactures which sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft.

The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, “It’s not just an evolutionary step…it borders on revolutionary.”…...

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