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B. Task Environment: Opportunities · Low Threat of New Entrants Due to High Switching Costs: Airline companies incur a high cost for the retraining of their pilots if they were to switch from Boeing aircrafts to another. · Low Threat of New Entrants Due to High Capital Costs: Any competitor entering the industry would need to invest an enormous amount of financial resources in manufacturing facilities in order to produce large commercial airplanes. · Low Threat of New Entrants Due to Cost Disadvantages Independent: Boeing was known for their commercial aircrafts. Boeing’s B-747 earned sufficient market share making it the standard for commercial aircrafts. · Low Threat of Substitute Products: There is no real alternative to commercial aircrafts. It is the fastest, most economical means of transportation for int’l travel. · As a supplier of the commercial aircrafts they have a lot of bargaining power, since the airline companies’ don’t have substitutes that are readily available. Threats · Strong Int’l Competition, Intense rivalry with Airbus: Boeing has few competitors and they are roughly equal in size compared to Boeing therefore they watch each other carefully to make sure that any move by Airbus is matched by an equal countermove. · Has a High Exit Barrier: Hard to leave the industry because Boeing’s manufacturing plants are specialized assets with few uses except for making airplanes. · Buyers of Boeing’s Airplanes Have A Lot of Bargaining Power: This is due to fact that the purchase of these aircrafts represents a high % of a buyer’s costs, thus providing them an incentive to shop around for a lower price. C. Summary EFAS (See Exhibit 1) IV. INTERNAL ENVIRONMENT A. Corporate Structure · Boeing has a divisional structure, specifically strategic business units, for manufacturing the world's premier commercial aircrafts. · Decision making is highly centralized to top management and leaders of the company. · Leaders are comprised of two offices of the chairman, seven business unit leaders, and seven functional leaders. B.
Approximate Word count = 1309
Approximate Pages = 5.2
(250 words per page double spaced)
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