scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 937
IIntroduction Boeing has long talked about expanding into the services area Does it make sense This is the question that we will try to answer in this paper by analyzing the market conditions the customer needs and Boeings core capabilities Within the commercial aircraft industry Boeings focus for value-added service relates primarily to the transport airplane segment which is expected to grow in the following years The most important driver for the commercial aircraft market is the trend in airline passenger traffic which is mainly influenced by -Economic growth -Political stability -Other factors such as industry profitability environmental constraints technology price among others Boeing projects the total commercial aircraft market over the next 20 years at more than 1000 billion based on global economic growth projections increased utilization levels of worldwide aircraft and requirements to replace older aircraft Nevertheless the revenues in aircraft manufacturing are decreasing given the competitive forces for customers and manufacturers This condition has driven Boeing in adopting a value-added service proposal in order to launch a program offering a total solution for airline fleet management IIValue Chain Design and manufacture of aircraft are only the first two links of the value chain After manufacture the planes must be financed maintained and occasionally modified for different uses Sometimes the planes must be repaired or recovered from traumatic in-flight damage Besides direct activities on the planes flight crews and technicians must be trained Finally parts must be produced repaired and distributed Boeing is mainly involved in design and manufacture of aircraft and spare parts However this portion of the market is shrinking due to decreased demand of new aircraft and slim margins As evidence in the three years of the case average EBIT for commercial airplanes was US-272 million Revenues in 1998 were about 355 billion The total market for new aircraft was an estimated 50 billion in 1998 based on extrapolation of case Exhibit 3 of which 23
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA