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Boeing Aircraft Technology Essay

Boeing- Business Strategy

Introduction

Boeing is the largest producer of commercial jets and military airplanes. It also designs electronic defense systems, missiles, satellites and modern information and communication systems.

1. Business strategy: The Company is developing solutions for cost effective exploitation of their aircrafts providing fuel efficiencies and rapid reconfiguration of seating layouts to optimize the ratio of seat occupancy for passenger class.

Value-Chain Analysis: It becomes essential for the management of the company to maintain world class Information Technology to meet the deadlines. Similarly, it needs to be in regular contact with its major suppliers. In addition, a well framed CAD/CAM technology is also required for the rapid product development and manufacturing cycles. As a result of this, the speed of transforming the concepts in production is increased to a great extent (Mishra. & Puri, 2007). For this purpose, the company has chosen a French CAD tool known as Catia, developed by Dassault (a military aircraft manufacturer). Hence, modern IT tools and their application are critical in both design and development to Boeing’s success in implementing the competitive strategy (Kazmi, 2002).

Porter’s Five Forces Model

• The Bargaining Power of Buyers- The buyers and suppliers are also assuming the role of regulatory bodies. As a result, the company has to constantly deal with these institutions to convince them to approve regulations in their favor and refrain from taking decisions threatening their competitive positioning.

• The Bargaining Power of Suppliers- This power is balanced as the company enters in negotiations with the engine suppliers to determine the engines for their planes. But, the bargaining power of these industries is for the benefit of the company as they fight for additional share of the market.

• New Entrants- Regulations, capital requirements, extremely skilled labor needs, sophisticated support industries and proven track record are a few of the high barriers to entry raised by the company. However, the company needs to be aware of the strategies of these upcoming players to counter their threat.

• Threats of Substitute Products or Services- Fast bullet trains and advances in automotive industry, such as high speed cars, electronic control on specially equipped freeways serve as major threats for the company. Also, advances in telecommunications techniques, collaborative computing, desktop video-conferencing are in direct competition with the company.

• Rivalry among existing players-Boeing is a part of an industry, which faces tough competition on a regular basis. Its major competitors are Airbus & McDonnell (Porter's 5 Forces Assessing the Balance of Power in a Business Situation., 2008).

2. Knowledge management in Boeing: Boeing is trying to promote an environment of productivity with the help of leveraging the knowledge and strength of its culture. Boeing has employees, who are full of knowledge related to their job. At Boeing, it is a comprehensive system that includes various processes, tools, methods and techniques for enabling the employees to share information effectively.

3. Boeing’s new business strategy: The new business strategy designed by the management of the organization directs its efforts towards developing an approach for driving the company's growth. These include the monitoring of the company's Corporate Development function consisting of the responsibilities for directing M&A activities within the company, including acquisitions, divestitures, mergers and joint ventures (Boeing Analysis Paper, 2008).

It also focuses the development of a leadership assigned with the task of executing the organization’s plans. This would ensure the company's growth through a disciplined process integrated with the overall strategic direction. Also, this strategy is based upon the experience, customer insight and leadership qualities of the employees (Ramaswamy. & Namakumari).

In order to execute this strategy, the company is making significant changes in its organizational hierarchical structure and would require the services of technologically sophisticated equipments and professionals. In terms of management, the company would require to move its senior executives to positions, which are crucial for this strategy. Knowledge management would play a pivotal role in the execution of this strategy as it is necessary to organize the knowledge assets existing in the organization in a proper manner. It is expected that the company would be successful in implementing this strategy as it is based upon a rational and efficient approach. As a result, major improvements are expected in the overall profitability and market-share of the company.

4. Role of Knowledge Management in Airbus- Several factors motivate the force to structure and preserve corporate knowledge. The KM initiatives have provided a competitive advantage to the company and resulted in positive improvements in its performance .KM group at Airbus Engineering aims at building Communities of Practice in order to support them in documenting their core knowledge. Its mission is to document the core knowledge and consolidate existing initiatives into a coherent knowledge management strategy.

References

• Kazmi, A. (2002). Business Policy and Strategic Management. Delhi: Tata McGraw-Hill Publishing Company Limited.
• Mishra, S.K. & Puri, V.K. (2007). Economic Environment of Business. Mumbai: Himalaya Publishing House.
• Ramaswamy, V.S. & Namakumari, S. Strategic Planning. Delhi: Macmillan India Ltd.
• Boeing Analysis Paper. 2008 Retrieved April 10, 2008, from www.soe.ucsc.edu/classes/cmps158/Winter05/boeing.htm
• Porter's Five Forces Assessing the Balance of Power in a Business Situation. (2008).
• Retrieved March 10, 2008, from http://www.mindtools.com/pages/article/newTMC_08.htm