Boeing

Boeing's product line represents a complete family of jetliners in a variety of passenger and cargo configurations and range capabilities. The Boeing 737 is the best-selling jetliner in aviation history and Boeing's marketing and production plans for the 777 are in the process of implementation.

Boeing's marketing strategy is built around the realization that most airlines are now run by businessmen and not aircraft enthusiasts. Their commercial customers want aircraft at low prices and are prepared to accept a higher degree of standardization.

Boeing is becoming more and more market- oriented offering its customers exclusive purchasing agreements, greater price flexibility, and shorter delivery time. Its marketing plans for the future include expansion of its jumbo jets, increased emphasis on sales to Asia, and more attention to the bottom line of its commercial aircraft customers. Boeing is betting that this new focus will increase the bottom line at Boeing as well.

In the Commercial aircraft industry, aircraft orders are up from their early 1990s slump. Boeing estimates that worldwide air travel will increase by 5.1% annually for the next 20 years. It is also estimated that world-wide, airlines will buy

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layer in commercial planes in the 100 seat capacity area, represented by the MD-95. The increasing weakness of McDonnell Douglas is evident in the recently proposed arrangement between Boeing and American Airlines. American announced that Boeing Company will become its sole supplier of jetliners for the next 20 year. The American fleet now includes 260 of Douglas's narrow-body MD-80 jetliners. If the American deal with Boeing goes through, it will mean that all of these planes will be replaced with Boeing 737s. The shutout at American follows Delta Air Lines' decision in early November of 1996 to eliminate Douglas as a contender to replace Delta's aging fleet of L-10ll wide-body jets. McDonnell Douglas had, at one time, hoped to expand its product line to better compete but it recently announced that it had abandoned the effort because of the $15 billion investment it would have required (Peltz, 1996). Other competitors to Boeing, Airbus and McDonnell Douglas are purely regional in scope, such as the recently collapsed Fokker of the Netherlands. and pose no serious threat to the big three. Customer Analysis The major customers for Boeing are commercial airlines from abound the world. These customers can be divided i
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Approximate Word count = 2699
Approximate Pages = 11 (250 words per page)

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