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Boeing: Redefining Strategies to Manage the Competitive Market ...

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CASE ASSIGNMENT

As the industry watches to see how Boeing's strategy performs against Airbus's strategy, management at Boeing is anxiously monitoring market signs to determine its next competitive move. It has underestimated Airbus in the past, and despite the fact that with billions of dollars invested and strategies that cannot be easily abandoned, Boeing needs to be prepared to respond to changing industry needs as quickly as they are detected.

You've been asked to join a strategic planning discussion, and hoping to contribute to the meeting, you decide to take one more look at Boeing's situation to see if you can formulate some insight that could give the company an edge against Airbus.

Your analysis includes the following elements:

1. Compare the two competitor's strategies. Based on your knowledge of the industry, what conclusions can you draw?

2. Outlining a rough competitor analysis, what does the level of interdependence between the rivals reveal about competitive behavior that can be expected from Airbus?

3. Evaluate the pros and cons of Boeing's outsourcing strategy. Do you agree with the company's decision to "offload" parts production?

4. Review Boeing's cooperative strategy. What are the risks of its partnership arrangements?

5. In what ways can Boeing's international strategy be improved?

6. What are some of the near-term results you anticipate in the airplane production industry? Long-term results?

STRATEGIC ACTIONS: STRATEGY FORMULATION

1. Compare the two competitor's strategies. Based on your knowledge of the industry, what conclusions can you draw?

|Strategy Comparison |Boeing |Airbus |
|Growth platform |Point-to-point |Hub-and-Spoke

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