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Boeing Competitive Advantage

In: Business and Management

Submitted By twilcox21
Words 674
Pages 3
Boeing 787

Comparative advantage, sometimes referred to as location-specific advantage, influences the decision of where to source and market. It is based on the lower cost of a factor (labor, for example) in one country relative to another, favoring industries that use this factor intensively (Kogut, 1985).
In order to survive in the global airline industry, and compete with the internationally based Airbus, Boeing needed to shift its strategy and utilize the comparative advantage of lowering costs through the use of global partnerships and technology.
Pioneered in 1917, Boeing defines itself as “the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training (Boeing, 2015).
Although the “largest” manufacturer of commercial and defense aircrafts, Boeing had experienced some pitfalls, causing them to shift their strategy and branding and develop strategic and comparative advantages over time to improve their overall global success and maintain dominance in the industry. One of the most impactful events that helped to shape Boeings strategic and comparative advantage opportunities was the introduction of new competition, Airbus. Headquartered in France, Airbus “makes the freedom of flight possible by designing, manufacturing and supporting the world’s best aircraft. Its people around the globe are united by a passion for aviation, as well as their desire to create better, more efficient ways for airlines and passengers to fly” (Airbus, 2015). In order...

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