Jennifer Dang Daniel Lee An Lien Charles Nguyen Tuan Nguyen

Produces military aircrafts Manufacture Commercial Airplanes Creates satellites and launch vehicles

1910 Failing to get a ride on an airplane 1916 Boeing airplane company 1917 World War I 1944 Jet airplane development 1969 Apollo program 1996 Mergers

Mission Help the airlines fill the airplanes Dreamliner

-Harry C Stonecipher CEO -Located in Chicago -Boeing employees 165,000 people -Ranked number two in passenger aircraft manufacture.

Suppliers - Nearly 6,450 suppliers in over 100 countries Customers - The U.S. department of defense - N.A.S.A. - Major U.S. and international airlines - U.S. Army, U.S. Navy, and the U.S. Marine Competitors 1. Airbus 2. Lockheed Martin 3. Northrop Grumann Sales & Revenues - $50.5 billion revenue in 2003 from 145 countries

The Office of Technology The Mathematics and Computing Technology Organization Software that Boeing Uses JavaPython C++VC++ CORBAOracle CATIADB2 Visual BasicPerl PrologLisp SQL Server

THREAT OF NEW ENTRANTS –Japan-Mitsubishi –Russian Topolev –Lockheed BARGAINING POWER OF BUYERS - Airlines - Leasing Companies

THREAT OF SUBSTITUTES –Fast Bullet Train –Cars BARGAINING POWER OF SUPPLIERS - Metalmart Inc. - Goodrich Corp. - Mitsubishi Electric Corp. RIVALRY OF COMPETITORS - Lockheed Martin - Airbus - Northrop Grumman

Boeing’s principal business-level strategy is differentiation because their organization produces high-prices, and quality products aimed at particular market segments Strengthen their global competitive advantage

Trying to take back their position as number one in commercial aircraft manufactures Boeing lost at least a billion dollar worth of rocket contracts Dealing with contracts

Detailed customer knowledge and focus We will seek to understand, anticipate and be responsive to our customers' needs. Large-scale systems integration We will continuously develop, advance, and protect the technical excellence that allows us to integrate effectively the systems we design and produce. Lean enterprise Our entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs. Customer satisfaction Satisfied customers are essential to our success. We will achieve total customer satisfaction by understanding what the customer wants and delivering it flawlessly. People working together We recognize that our strength and our competitive advantage is - and always will be - people. We will continually learn, and share ideas and knowledge. We will encourage cooperative efforts at every level and across all activities in our company.

While Boeing is trimming its workforce and becoming lean and mean, it may also jeopardize its ability to attract and maintain skilled workers in the future when the market conditions improve, if the general perception is that Boeing will lay off as soon as the market deteriorates. Its balance sheet and income statement point to some weaknesses; R&D spending of $1,661 million, around 8% of sales is rather low. Its long term debt is increasing and its overall return on common equity is around 8.9%, below the average industry rate which is 13.1%. That, associated with its declining defense revenues may restrict its access to additional capital in times of crisis. Boeing is late in adopting some of the technological innovations that its rival Airbus has implemented such as getting family approval for different planes, thus allowing pilots to move from one model of plane to another without requiring a certification. Boeing is also behind Airbus in getting a financing and leasing operation to support its sales. Finally, Boeing should not hope that in the foreseeable future the European Union will cut its subsidies to Airbus and let it compete without any protection in the world markets and that at that moment, thanks to its much higher productivity, Boeing will outperform its rival. On the contrary, Boeing should plan on a much longer competition period, and should seek alliances that could enhance its financial position and open new markets.