Boeing Company's Competitive Position Essay

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Boeing: Competitive Position

The name of the Boeing Corporation, the "world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems" is synonymous with the production of commercial and military aircrafts (Boeing in brief, 2011, Boeing). It is organized into two branches: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Its products include aircrafts; satellites; weapons; communications, informations, defense and logistics systems (Boeing in brief, 2011, Boeing).

The commercial passenger airline industry has been amongst one of the most hard-hit by the recent economic downturn. The 2008 recession curtailed business and tourist-related travel. Also, more businesses are communicating remotely rather than face-to-face. The rising costs of fuel and labor disputes have hurt the major airlines, resulting in a decline in demand for aircrafts in the short-term. However, Boeing believes that in the long-term, demand for its products will continue: "passenger air traffic rose 8% in 2010, after declining about 2% in 2009. The persistent resilience of air travel is expected to sustain 6% growth in 2011 and keep the growth rate at or above the historical trend through the middle of the decade" (Long-term market, 2011, Boeing).

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Boeing believes that the replacement of obsolete aircrafts, and the desire for newer, smaller planes will be beneficial for its market position: "the twin-aisle market, which includes efficient long-range airplanes such as the Boeing 787 and 777, is the fastest-growing segment of the market, accounting for 22% of the delivery units and 43% of the delivery dollars" (Long-term market, 2011, Boeing: 1). The need to replace older airplanes for safety and fuel-efficiency reasons "will account for 40% of the projected market for new airplanes" (Long-term market, 2011, Boeing: 2).

Boeing's fiercest competitor in the market is Airbus, an intense rivalry that has caused some to call the market for airplanes a 'duopoly.' Boeing has recently struggled in relation to its rival in terms of bringing successful projects to completion. For example, one of its most-anticipated projects, the fuel-efficient 787 'Dreamliner' has….....

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