Swot Analysis on Boeing and Airbus
Autor: viki • March 18, 2011 • Essay • 743 Words (3 Pages) • 1,781 Views
Strengths: In commercial aviation industry Boeing is the largest manufacturer of aircraft around the world, with its strong network around 145 countries. Mainly it delivers the aircrafts in the developing and developed countries. Wide product line of the company helps him to fly high and touch the peak of the sky. The well-organized production system and knowledgeable, capable and skilled labour force is the key strength of the company. Another most focusing strength is the technology and timely innovation of its product. Boeing is offering an economical price, so that developing countries can also easily deal with Boeing. The customer base of the company is also very strong in respect to both national and international, as it is only dealing in good reputed and quality product and due to this the product is also reliable.
Weaknesses: The core weakness in Boeing is the internal policies in its corporate governance and with the effect of this the employees are not giving their full in the production process. Even the cost of investment and production process is also being a weakness for the company. Boeing is highly dependent on its suppliers, which may also act an excuse in delaying process. Highly dependence of Boeing on government subsidies is also a point of weakness for the company. Multi diversification can also be act as a weakness for Boeing, as it may lead to more human error and can also create barrier in communication.
Opportunities: The prime opportunity in the industry is the rapid development and innovation in technology. Technology helps in bringing advancement in commercial aircraft industry. More of market can be captured and even sales can be increase by expanding the company to external market. Increment of demand in developing countries and emerging markets is also a good opportunity for Boeing to expand its market globally. For this market they can also plan cheap small size plane to lead the market.
Threat: Allowance of subsidy to its biggest competitor Airbus by EU government is acting as a threat for Boeing because after receiving the discount Airbus is offering a huge discount on its product. So as to give a counter attack on the discount offer Boeing need to offer something different to its