Boeing case study for marketing services.

I.Introduction

Boeing has long talked about expanding into the divine services argona.... Does it make sense? This is the incredulity that we will try to answer in this paper by analyzing the merchandise conditions, the customer needs, and Boeings core capabilities.

Within the commercial aircraft industry, Boeings focus for value-added service relates primarily to the transport airplane segment, which is expected to grow in the following years.

The most important driver for the commercial aircraft market is the trend in airline passenger traffic, which is mainly influenced by:

-Economic growth

-Political stability

-Other factors such as, industry profitability, environmental constraints, technology, price, among others

Boeing projects the total commercial aircraft market over the next 20 years at to a greater extent than $1,000 billion, based on global economic growth projections, change magnitude utilization levels of worldwide aircraft, and requirements to replace older aircraft.

Nevertheless, the revenues in aircraft manufacturing be decreasing given the competitive forces for customers and even uprs. This condition has driven Boeing in adopting a value-added service proposal in state to put up a program offering a total solvent for airline fleet management.

II.Value Chain

Design and manufacture of aircraft are hardly the first two links of the value chain. After manufacture, the planes moldinessiness be financed, maintained, and occasionally modified for different uses. Sometimes the planes must(prenominal) be repaired or recovered from traumatic in-flight damage. Besides unionize activities on the planes, flight crews and technicians must be trained.



Finally, parts must be produced, repaired and distributed.

Boeing is mainly involved in design and manufacture of aircraft and spare parts. However, this portion of the market is shrinking due to fall demand of new aircraft and slim margins. As evidence, in the common chord years of the case, average EBIT for commercial airplanes was US$-272 million. Revenues in 1998 were about $35.5 billion.

The total...

I am a stockholder in Boeing...therefore I formulate their quarterly report...what the author wrote is semi-accurate...some things are completely omitted...and certain points are delved deeple enough into.

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