The Boeing 7e7 Dreamliner

In: Business and Management

Submitted By apelzar
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The Boeing 7E7 ‘Dreamliner’

Case #3

Section 1, Group 8

The Boeing 787 Dreamliner case provides us with a brief background of Boeing’s business through the end of the 1990’s, and how company management recognized the importance of reinventing their core business in order to remain competitive in the consumer air travel segment. We learned how in-depth of a process it can be to successfully design and produce a new airplane with revolutionary technology and high-tech manufacturing requirements. Boeing struggled with these aspects of the plane, and as we learned, greatly underestimated the amount of time and money that the project would require.

A: Boeing and Airbus both issued corporate reports regarding the demand for aircraft in different segments going forward. Despite differences in the overall outlook in terms of segment popularity and the exact volumes of aircraft to be required by the market, both reports were very obviously positive.
The main differences between the reports were seen in Boeing’s willingness to forecast for the increased popularity of mid-range aircraft, versus Airbus’ decision to place a higher weight on the importance of international-scale jetliners. Boeing predicted demand over 20 years would call for “5,437 intermediate twin-aisle airplanes; and 889 747-size or larger airplanes” (Boeing’s 2003 Current Market Outlook). Airbus’ predictions were shifted toward the larger aircraft segments, citing “3,842 twin-aisle aircraft; 1138 very large aircraft, and 706 freighters” (Airbus’s 2002 Global Market Forecast 2001-2020).
These predictions seem to be sound, and have actually proven to represent a pessimistic view on the state of air travel, with both companies having recently increased their outlooks for aircraft to be produced over the next 20 years. Air travel continues to be a surprisingly resilient industry,…...

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