Dreamliner Boeing 787

In: Business and Management

Submitted By kewellian
Words 500
Pages 2
As per your request, this memo provides an analysis of the Boeing 787 project and recommendations for the Boeing Company overcoming their challenges.
The Boeing 787 is positioned to target airlines which wish to provide nonstop service on routes that required long range but did not justify larger airplanes. Since the 787 would be the first of its kind, it creates a potential market for the Boeing Company and avoids direct competition with its major competitor, the Airbus Company. Besides, with the supply of non-renewable sources of energy remained a major concern for the new generations, aircraft like the 787 that is more fuel-efficient may become a leading trend in the near future. Exchange rate in recent years also creates advantage for Boeing 787 orders as the US currency has been weak since the 2008 economic downturn in the US.
In order to achieve its goal of minimizing cost, the Boeing Company has outsourced most of the components to its structural suppliers for the 787 project. By outsourcing, the company can avoid incurring unnecessary expenses such as stock up cost, wages for workers and the need of having a larger plant. Nevertheless, outsourcing would also create problems to the company. One of the major problems faced by the Boeing Company is the difficulty of ensuring the project could be completed on schedule as Boeing do not have as much control as before they outsourced. More technical problems may arise as the final assembly takes place as different components are built by different suppliers. The above two problems may account for the delay in deliveries.
Another problem of outsourcing is that suppliers may build up expertise in making aircrafts which can be a threat to Boeing as strategic partners (suppliers) today may become competitors in the future. However, outsourcing and competitions seemed to be inevitable in this case as Boeing wish to…...

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