Boeing - Airbus Case Analysis

Boeing is faced with a set of decisions that are critical to the health and ultimately survival of the firm. The issues they face are both short and long term. Their strategy regarding the 7E7 market requires that decisions be made and that tactics be defined which propel the company in the short run. Longer term, Boeing must enact a strategy that truly defines its existence as a diversified multi unit firm. On the surface, the framework of the ‘develop versus diversify’ debate is positioned as a mutually exclusive decision that implies little room for compromise. However, this paper will propose a potential strategy that seeks to mitigate this constraint.
Boeing should define a strategy to fund the development of the 7E7. The company has thrived in the past by successfully gambling on cutting edge jet design. This strength in profitably bringing innovative commercial planes to market indicates a prospective competitive advantage that customers, analysts, and some board mem...