Boeing 7e7 Analysis

In: Business and Management

Submitted By lewisra1
Words 1383
Pages 6
I. Introduction A. Background
Boeing, a well-known aerospace company, has been facing a large decision regarding investing money in to producing a new aircraft. Boeing is split into two different primary segments: commercial airplanes and integrated defense systems or in other words, government contracts. Boeing makes commercial airplanes that can be used for both short and long-range flights, while also accepting government defense contracts. Boeing produces and sells six different airplanes to meet the needs of short- to long-range markets. Some of these aircrafts include the 717, 737, 747, 757, 767, and 777. For 2003, Boeing expects to deliver 280 aircraft and expects between 275 and 300 the following year. The expected revenues for 2003 are at $22 billion, which are down from $28 billion the previous year. B. History of the Industry
Fundamentally, Boeing is a commercial-aircraft company. Unfortunately, as a part of this industry, they have started to see a significant downfall. They have lost the number one position to Airbus, their largest commercial competitors. Not only this, but also the current economic conditions look less than desirable for the commercial aircraft industry at the moment due to several reasons:
• The SARS outbreak
• Terrorist risks
• Post 9-11 flying fears
• War
With all of this in mind, the decision to produce a new aircraft becomes even more questionable when analyzing how this company is to remain a dominant player in the future.

C. Boeing and the Industry Boeing has stuck with its current model for some time now and has not introduced a new aircraft since the 777 in 1994. In June 2003, Boeing announced the development of a new commercial jet called the 7E7 or the “Dreamliner”. The 7E7 has many projected benefits such as 20% less fuel, long and short-term options, a technologically advanced carbon re-enforced…...

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