The Analysis of Boeing Airplane Company

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Diversification of Economies
Conclusion
Reference

Introduction

Through cost leadership, Boeing will seek to become the low-cost producer in the commercial airplane market. To achieve this, the company can venture into upcoming production procedures and technologies that will enable it to produce its airplanes at a lower cost than its competitors (Suprihono et al., 2021). Additionally, Boeing will work to reduce its overhead costs and selling, general, and administrative expenses by automating production, reducing waste, and negotiating better deals with suppliers. In terms of differentiation, Boeing will differentiate its airplanes from its competitors by offering superior performance, fuel efficiency, and cabin comfort. Additionally, Boeing can offer its customers a unique suite of services, including maintenance, training, and support (Suprihono et al., 2021). This will increase customer preference and loyalty to Boeing Company, increasing its sales and maintaining current buyers.

Improving competitive advantage through focus requires the Boeing Airplane Company to select a specific market or customer segment and attend to them exclusively. Boeing will focus on serving the needs of airlines that operate in high-traffic, long-haul markets. IT can also design planes targeting leisure travelers around the globe, making them as unique and cost-effective as possible. By focusing on a specific market, the company can better tailor its products and services to meet the needs of that market (Suprihono et al., 2021). Thus, Boeing will be able to serve its customer’s needs better and compete more effectively against its competitors.

Diversification of Economies

Mergers and acquisitions are activities that change the ownership of either operating units or the entire business from one company to another. For instance, Boeing can unite with other airline production companies around the globe, where they will produce, market, and sell all their products as Boeing. This can help to diversify economies of scale by providing new opportunities for businesses to expand their operations and enter new markets. Additionally, mergers and acquisitions can help to create new jobs and spur economic growth. By acquiring other companies, Boeing can spread its fixed costs over a more significant number of units, leading to lower unit costs and increased profitability (Suprihono et al., 2021). Moreover, mergers and acquisitions can help Boeing access new technologies, products, and markets. Thus, Boeing will be better positioned to compete even globally with other Airplane production companies and stand a chance to be on the top.

One advantage a company’s diversification may gain from mergers and acquisitions is providing access to new customer segments and markets it could not reach before. For instance, in 1997, Boeing merged with McDonnell Douglas and could serve all previously owned market shares (Suprihono et al., 2021). Boeing was able to advance to one of the world’s greatest airplane producers due to the advantages posed by this merger.

Conclusion

Another positive result is cost savings by eliminating effort duplication and enjoying the advantages of economies of scale. For instance, two combined organizations can unite their various departments into one, making it easier and cheaper to manage. For example, if Boeing decides to merge with Bombardier Company, they could have one marketing department the two departments. This can also be done with other functions within the company, such as accounting and human resources. Moreover, the two firms can share resources and make what the other company lacks easier to access (Suprihono et al., 2021). For instance, if one company has a marketing team and the other company has a sales team, the two groups can share resources and information to avoid efforts duplication.

Reference

Suprihono, S., Prasetya, A., & Abdillah, Y. (2021). Improving firm performance through competitive advantage, differentiation strategy and cost leadership: A literature review.International Journal of Artificial Intelligence Research, 6(1). Web.

Click Here To Order Now!

The Analysis of Boeing Airplane Company

Do you need this or any other assignment done for you from scratch?

We have qualified writers to help you.

We assure you a quality paper that is 100% free from plagiarism and AI.

You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)