THE BOEING 7E7 Harvard Case Solution & Analysis

THE BOEING 7E7

Introduction:

Boeingisa USA basedworld’s largest aerospace company and leading manufacturer of commercial jets, defense, and space and security system. Boeing has a successful track record of innovating new products and services in the aerospace, commercial jets and security systems industry. These include logistics and military aircrafts, weapons and electronic information and communication systems.

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Boeing has a series of different types of planes in its product line; they are mainly 737, 747, 767 and 777 families of the planes, and these planes were widely sold to the airline and logistics companies around the world. The BoeingCompanyhas successfully diversified its operations since the starting of the company. Boeing Company is a group of different subsidiaries; these subsidiaries include Aviall Services,Boeing Aircraft Holding Company, Boeing Australia,Boeing Canada,Boeing Capital Corporation,Boeing Commercial Space Company Boeing DefenseUK, Jeppesen, Narus.

Commercial aircraft industry:

In 2002, Airbus and Boeing had full domination on the large plane (100+ seats) commercial aircraft industry.However,Boeing had more dominancy in the market with respect to the market share by customer orders and by revenue. In 2002, Airbus received 233 commercial orders from the customers as compared to Boeing with 176 orders; this represents Airbus’s market share of 57% with respect to units and an estimated53.5% dollar market share.

Airbus:

Airbus was established in 1970, by European companies’ consortium. Airbus sold its first 1000 air

crafts in its twenty three years operations, next 1000 aircrafts in six years and the next in only three years’ time. In 1999, Airbus’ recorded profits were more than the profits of its rival company,Boeing.............................

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