Boeing SWOT Analysis

adam June 5, 2010 Aerospace & Airline 1 Comment

Introduction

Boeing is the largest aircraft manufacturer in the world. It has strongly established around the world. Almost every commercial airline purchase planes from the Boeing.

SWOT Analysis

SWOT is the tool to see that where organization stands, which areas required improvement, which areas required serious consideration, which would be the source of growth, which things need avoidance and so on. The SWOT of Boeing will help to understand the position of Boeing in the market.

Strengths

It is the largest aircraft manufacturer globally, it has given the most of the orders for aircraft manufacturing and it delivers aircraft to large no. of developed and developing countries.

Its rank as defense contractor with different countries is second. Mostly defense fighter aircrafts also manufactured by Boeing.

The designs of Boeing’s aircrafts are efficient. There is no fault in its designs. Its production system is also very efficient that’s why most airlines and countries order Boeing to manufacture their aircrafts.

The engineers working in Boeing are also efficient, skilled and competent. They are also the reason for Boeing’s success because without competent workforce no organization can survive.

It also has the Strength of product diversification, it not only manufactures commercial aircraft but also manufacture aerospace and defense aircrafts. There is a big difference in commercial and defense aircraft from every aspect.

Another reason of its largest manufacturer is that it offers competitive price which is not so high that’s why developing countries also order to Boeing.

It has strong customer base national and international both. And it has the good reputation regarding quality of the products that’s why its products are reliable.

Weaknesses

The corporate governance of Boeing is not good that’s why the employees are not happy with its internal policies and procedures which is one of its weakness because when employees are not satisfied; their performance would also be affected which also affect the productivity of the workers as well as the productivity of the company as a whole.

Cost of developing an aircraft is very high which put burden on the company.

It relies on suppliers and component manufacturer so that they can be the reason of loss by delay or end the supply which can also affect the reputation of the Boeing as well.

Opportunities

The rapid advancement in technology will bring advancement in aircraft as well. Through the advanced technology light wait aircrafts can be created. And the defense aircrafts of longer range can also be made through technological advancement.

Through the expansion of market it can increase its sale and capture more market share. As the demand for aircrafts is increasing world wide so it would be great opportunity for Boeing to expand its market.

In Asia the customers for defense as well as commercial aircraft is increasing rapidly so Boeing has the great chance to capture Asian market before competitors reach there to capture that market.

Through the innovation in products it can attract more customers and can increase its sales as well.

Threats

Its main competitor is Airbus which is offering the discount in its products because it is subsidized by European common market. So it can take away its competitors by offering low prices.

The competition of Boeing and Airbus is head to head so Boeing has to be alert. It should offer something different to counter attack the discount offered by Airbus.

In most areas the focus is on refurnish the old aircraft rather than buy new ones which can decrease the demand as well as sales of the aircraft.

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