and Europe
* Response to customer wants and needs
* Energy and material conservation
* Increasing world wide demand for commercial airlines.
The Macroenvironment
20 Year Market Potential
The Macroenvironment
* Competition
o Airbus Industries of Europe
+ Formed in 1970
+ From a Fledgling to a Formidable Opponent
+ Since 2000 Airbus has been the number 1 in sales
+ In 2005, achieved a 51% share of global market
* Market, sales, and delivers to end user... displayed 300 characters
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Hub-to-Hub
+ "It's more accurate to say that we have two distinct views of the market. We believe that airlines ultimately respond to what passengers want? more opportunities to fly where they want to go, when they want to go."
Randy Basler ? VP Marketing
Boeing SWOT Analysis
* Strengths
o Innovation and Technical Expertise
o Strong reputation of quality and industry leadership
o Long-standing customer relationships
o International customer base
o Supplier-Component Manufacturer Networks
o Commercial Aircraft is one of six business divisions
SWOT ? Continued
* Weaknesses
o Development Costs for new products: $8-10 Billion
o Reliance on Suppliers-Component Manufacturers (both strength and weakness)
* Opportunities
o New technologies to build lighter, longer range aircraft
o New airline customers in Asia and Pacific market
o Airline travel pattern changes supporting Boeing product line
SWOT - Continued
* Threats
o Aggressive Airbus Price Discount Practices
+ WTO dispute regarding EU subsidies
o Changing economics
+ Domestic airline bankruptcies
o Changing governments, politics and business partners based in those countries
+ Example: Dubai Port management controversy
o Air travel vision could be wrong
Mission Statement
* "The Commercial Airplanes segment is involved in developing, producing and marketing commercial jet aircraft and providing related support services, principally to the commercial airline industry worldwide... displayed 300 characters
