This paper presents the analysis of the business-level strategies for Boeing and their role in the determination of the long-term success of this firm. Besides, the paper analyzes different corporate-level strategy associated with the corporation and their role in influencing its long-term success. Also, the paper explores the competitive environment of Boeing with the objective of determining its most significant competitor. In this regard, more emphasis is placed on the comparison of Boeing and Airbus concerning different levels of strategies namely (resource similarity, market commonality, competitive dynamics, and competitive behavior. Finally, the paper presents an evaluation of the market cycles associated with Boeing and its major competitor in the airline industry.
Business-Level Strategies
Business level strategies for Boeing are largely concerned with the detailing of actions taken by the corporation with the objective of providing value to its customers. Besides, the adoption of appropriate business-level strategies for Boeing has a critical role to play in ensuring that customers obtain a desirable value and corporation boosts its competitive advantage. Such development could be realized through the involvement of Boeing in the exploitation of its core competencies in service markets. To that extent, the business-level strategies embraced by this corporation are more concerned with the enhancement of its position in the market relative to the forces of competition and its competitors. One of the business-level strategies adopted by Boeing involves the development of solutions meant for the facilitation of the exploitation of aircraft with rapid configurations and high field efficiencies. The focus of this particular business-level strategy is the optimization of the seat occupancy ratio for different passenger class aircraft (Boeing, 2018). The other business-level strategy for this specific corporation is that it operates several other critical businesses whose support is directed to the mainline business. In this regard, the business model used by Boeing becomes more competitive and viable owing to the corporation’s extensive presence and involvement in security, commercial, defense, and capital services. The core competencies of a business organization should focus on the satisfaction of the preferences or needs of its customers as a way of working towards the achievement of its desired returns.
Delegate your assignment to our experts and they will do the rest.
Part of Boeing's long-term business-level strategies is presented through its strategic vision of enabling people to work together in the form of the worldwide enterprise under the guidance of aerospace leadership. To that extent, this choice of its business-level strategy is justified due to its crucial role in improving quality of services offered to its customers, growth, and development of the corporation as well as the realization of increased profitability. Furthermore, the long-term success of the Boeing Corporation is substantially dependent on its ability to place its customers as the essence of the foundation of its business-level strategies. In this respect, such strategies are more concerned with the identification of the target market that needs to be served by this corporation, and the customer needs that the company is expected to meet as well as the manner in which needs would be satisfied ( Goetsch & Davis, 2014). The strategic involvement in the operation of several other critical businesses by this corporation may be considered as a business-level strategy with considerable importance in the determination of its long-term extent or level of success. The justification for the choice of this particular business strategy lies in its positive impact in boosting the returns of this corporation as well as enhancing its level of sustainability as a strong competitor in the market.
According to Boeing (2018), Boeing is involved in stiff competition with several other companies in its market segment of focus such as Airbus, Bombardier, and Embraer. Therefore, its strategic decisions towards the introduction of initiatives meant to enhance its networks, customer support, operational process, and cost-reduction among others are critical towards ensuring that it remains competitive in the market. Moreover, Boeing’s business-level strategies are more concerned with pursuing stronger levels of diversification using its product portfolio. In this regard, Boeing would be expected to develop initiatives with the objective of enhancing quality, efficiency, customer responsiveness, and innovation. Besides, the initiative for the productivity of internal services would be relevant in raising the levels of productivity for this corporation. Additionally, Boeing's business-level strategy would play a vital role in the achievement of higher economies of scale through global outsourcing and sourcing.
Corporate-Level Strategies
One of Boeing's corporate-level strategies is diversification of its corporate and business engagements. Regarding the establishment and sustenance of corporate-level strategies, Boeing focuses on the diversification of its corporate and business engagements. To this extent, Boeing is a major player in defense technology, aerospace, commercial aircraft, and security as well as corporate financial services and solutions. Besides, the federal government of the United States often engages Boeing in the manufacture of defense weapons, installation of security systems as well as the making of military places. NASA also engages Boeing at a corporate level with the intention of asking for its active involvement in making their spaceships. The presence of large contracts and engagement with a diverse range of corporates makes it more convenient for Boeing sustain its position as a stronger competitor in its industry against its main rivals such as Airbus (Nolan, 2012). The adoption of effective corporate-level strategies where it engages with various corporations in other sectors makes it difficult for its rivals like Airbus to match its competitive advantages. Another corporate-level strategy for this company involves the development of technology and advanced systems to help in meeting the needs and preferences of its customers.
The explanation by Goetsch and Davis (2014) presents corporate-level strategies as action plans laid down by major corporates such as Boeing with the aim of gaining a competitive edge by selecting and managing several businesses operating in various product markets or industries. The diversification of corporate-level strategies as a competitive advantage will make it possible for Boeing to remain it its competitive positions even some of its businesses become less profitable. The corporate-level strategy that is most important to the long-term success of Boeing is diversification of its corporate and business engagements. The judgment of this particular corporate-level strategy as a good choice with substantial significance to its long-term success could be justified owing to its ability to demonstrate three crucial elements namely growth, stability and diversification. In this respect, the growth element of the corporate-level strategy chosen by Boeing will be more concerned with the approaches and techniques adopted in the acquisition of more revenues from the sale of its products and services (Albers et al ., 2017). This particular element of Boeing's corporate-level strategy encourages the company to increase its revenues by raining its market share. In this case, it would be important for Boeing to explore a vertical strategy of growth that will seek to enhance the efficiency of various operations with the company. The stability element of the corporate-level strategy selected for Boeing Corporation would have a vital role to play in stabilizing and maintaining its level of success under the available platforms across its market share.
Besides, Boeing is expected to enhance the cost-effectiveness of its operation and processes through cost reduction and automation as well as having better negotiations for the cost of materials and margins of distribution. Essentially, the stability strategy is capable of guiding the management of Boeing Corporation towards focusing on customer retention in adverse economic times and environments (Boeing, 2018). The other reason for the justification of the chosen corporate-level strategy in long-term success for Boeing is its substantial role in the diversification of its product and services. The significance of diversification in corporate-level strategy embraced by Boeing would be expected to would focus on boosting the sale of its products and services. In this respect, the strategy of dominant business diversification would be utilized in by the company is seeking to be among players in its industry. To continue with the advancement and sustainability of its long-term success, Boeing would be expected to utilize its corporate-level strategies in raining the value of products and services it offers to its customers. This strategy would also entail the company playing an active role in speeding up its reaction to the demand for its products in the market ( Boeing, 2018).
Competitive Environment
Boeing continues to face growing competition from different companies in its fast-changing industry. In the recent past, this company managed to increase the long-term demand forecast associated with its new commercial aircraft. However, the rapid growth of low-cost carriers in the market presented Boeing with significant competition. To that extent, the demand for more airplanes in countries such as China has increasingly been inspired and motivated through rapid expansion of the market for a low-cost model. This phenomenon of the low-cost model has played a considerable role in raising the demand for aircraft in various countries whereas less expensive aircraft have been able to experience an aggressive expansion. Boeing is an international corporation with a global presence and a substantial business base owing to its business engagements and operations in several countries around the globe (Albers et al ., 2017). Nonetheless, it faces considerable competition from other aerospace companies with Airbus being among its main competitors.
At the level of market commonality, both Boeing and Airbus are relying on their installation of extensive global networks that reflect the common presence in several markets around the world. Considering resources similarities, Boeing has more resources than Airbus courtesy of the several business services that it offers whereas Airbus only focuses on the manufacture and sale of aircraft. The competitive behavior of Boeing focuses on strengthening making more returns from its numerous competitive advantages whereas the competitive behavior of Airbus entails working towards the attainment of higher standards of product and service delivery (Boeing, 2018). The competitive dynamics associated with the business operations of Boeing are characterized by challenges that assist in the creation of the opportunities that the company uses in revamping its commercial airplane business. On the other hand, the competitive dynamics surrounding involve its maneuvering with the objective of creating a less centric and balanced market in the airline industry. Boeing has a higher likelihood of being more successful compared in the long-term compared to Airbus (Nolan, 2012). This justification for this choice lies in the Boeing’s business-level strategies which is more concerned with pursuing different levels of diversification using its product portfolio. Moreover, Boeing engages in several other business operations whereas Airbus only concentrates on the airline industry.
Market Cycles
Slow-cycle markets refer to situations where the competitive advantages of a given company are protected from experiencing imitations for long durations especially where such imitations are considered to be substantially costly. Therefore, competitive advantages are usually sustainable in situations characterized by slow-cycle markets. Fast-cycle markets represent situations in which the competitive advantages of a company are not shielded or protected from imitation especially where imitation may be rapid and inexpensive. In this regard, there is little or lack of sustainability for competitive advantages (Albers et al ., 2017). In both slow-cycle and fast-cycle markets, Boeing would remain as the most likely to be successful in the long term.
References
Albers, S., Baum, H., Auerbach, S., & Delfmann, W. (2017). Strategic management in the aviation industry : Routledge.
Boeing. (2018). Our Company . Retrieved November 21, 2018, from http://www.boeing.com/company/
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence : Upper Saddle River, NJ: Pearson.
Nolan, R. L. (2012). Ubiquitous IT: The case of the Boeing 787 and the implications for strategic IT research. The Journal of Strategic Information Systems , 21 (2), 91-102.
York: Cengage Custom Publishing
