Introduction
Boeing is the world’s largest aerospace company, offering commercial jetliners and military aircraft. It produces the second-largest number of commercial aircraft in the world, behind Airbus. Boeing has been ranked among “America’s Best Employers” by Forbes for five consecutive years.
The Boeing Company was founded by William Boeing on July 15, 1916 and incorporated on March 15, 1917 as Pacific Aero Products Co., Ltd., which became known as United Aircraft & Transport Corp in 1931. In 1934, it moved its headquarters from Seattle to New York City because of the great distance between Washington state and New York City; however, production remained in Seattle until 1936 when all manufacturing was moved to a single location at Renton Field near Seattle-Tacoma International Airport where it remains today
Development of Boeing
Boeing was founded in 1916 by William E. Boeing, and it is now the largest aerospace company in the world. It has a revenue of $90 billion and employs approximately 130,000 people worldwide. The company generates almost 80% of its revenues from commercial airplane sales and services. Boeing has been building military aircraft since 1917, when it produced its first seaplane for the U.S. Navy during World War I; this experience led to its current status as the second largest defense contractor in the world (after Lockheed Martin).
Boeing’s business model is based on six pillars:
The Core Activities of Boeing
Boeing is a manufacturer of commercial and military aircraft and spacecraft. The company is also a major defense contractor, with government contracts that account for more than 30 percent of its business. Boeing also operates in other areas such as space technology and global services.
Boeing Value Proposition
- Boeing offers its customers a wide range of aircraft and services.
- Boeing has a strong reputation for quality and reliability.
- Boeing has a broad range of aircraft and services.
Boeing Revenue Streams
- Boeing generates revenue from a variety of sources, including sales of aircraft, services and products.
- Boeing’s major revenue streams include:
- Aircraft sales
- Services and support
- Military aircraft sales
- Commercial aircraft sales
Boeing Business Model Canvas
The Business Model Canvas is a structured approach to visualizing the key components of a business model. It helps you to think about how your current business works, where value lies and how you create it, and which parts or activities can be removed or improved.
In the context of Boeing’s business model canvas, we can see that they focus on designing aircrafts that meet customer needs while providing return on investment (ROI) to shareholders. The key elements are shown below:
SWOT Analysis of Boeing
Strengths:
- The company is a pioneer in the aviation industry and has a long history of producing high quality aircraft and aircraft parts.
- It has a very strong brand name that people trust. Boeing’s name is synonymous with quality, making it easy for the company to sell its products at premium prices.
- The company has an extensive dealer network that sells and services its products, allowing them to have more sales channels than some other manufacturers do.
- Its customers include airlines around the world who are constantly growing their fleets, as well as military organizations that need advanced technology for their operations.
How profitable is the business model of Boeing?
Boeing’s business model is unique in that it produces both its products and services. In fact, the company’s revenue comes from a combination of its aircraft sales and service revenue.
Boeing offers three primary services: maintenance, modification, and training—all which help to keep Boeing planes flying safely for airlines around the world. Service accounts for about 40 percent of all revenues generated by Boeing Commercial Airplanes (BCA), but it’s where most of their profits come from as well.
As far as product sales go, BCA’s biggest selling point is their 737 Max 8/9 family of narrow-body jets which can carry between 150-200 passengers on transcontinental flights at up to 500 mph. Their latest model is slated to go into production later this month; expect some great deals when they become available!
PESTEL Analysis of the Boeing Business Model
- Political: Boeing should consider the political aspects of its business model. For example, it needs to consider how the company’s actions will affect its relationship with government regulators and international organizations like the World Trade Organization (WTO).
- Economic: Boeing should also think about economic factors such as supply chain management and pricing policies.
- Sociological: The company must consider sociological factors when developing its business model, such as whether new employees have been hired recently and what type of training is available for them.
- Technological: Technology plays a role in any organization’s success or failure; therefore, Boeing should take into consideration what technological changes may influence their business model over time. For example, advances in 3D printing could allow for easier manufacturing methods for aircraft parts which could decrease production costs while improving quality control measures due to increased accuracy during manufacture process stages due to less human error during assembly lines due efficiency gains from automation technologies implemented will improve your bottom line profits if you implement these types technologies now instead waiting because prices are going down every year
Key Resources in the Boeing Business Model
A strong supply chain is one of the key resources in Boeing’s business model. The company has a large number of suppliers that provides it with components, materials and services that are critical to its operations.
This resource plays a vital role in helping Boeing design, manufacture and deliver its products to customers on time. It also ensures that the company meets its production capacity targets while remaining competitive in the global marketplace.
Key Activities in the Boeing Business Model
The Boeing Business Model includes the following key activities:
- Manufacturing of aircraft, aircraft parts and engines.
- Selling aircraft, aircraft parts and engines to airlines and leasing companies.
- Insuring aircraft against potential problems that could lead to loss or damage.
- Providing maintenance services for airplanes operated by airlines around the world. These services include repair work on mechanical systems such as landing gear and engine maintenance; cleaning interior spaces; conducting periodic inspections; replacing worn components; etc.
Key Partnerships in the Boeing Business Model
Boeing’s business model is based on partnerships with a number of other companies, including airlines, aerospace companies and even the U.S. government.
In addition to its own production facilities, Boeing also owns several manufacturing plants located around the world that build components for its planes. These facilities are operated by its partners in order to meet demand for aircraft parts and assembly services from other customers as well as Boeing itself. For example, Air China Group Co Ltd has partnered with Boeing to manufacture wings for narrow-body jets in Tianjin since 2009 (Wang et al.).
Boeing also partners with airlines to provide them with aircrafts that are customized to meet their needs and specifications (Van Brunt). For instance, Delta Airlines had partnered with Boeing so they could acquire customized 737 Max jets that were fitted out with an extra seat row between economy class seats while United Airlines ordered 50 of these same planes (McLaughlin).
Customer Relationships in the Boeing Business Model
Customer Relationships in the Boeing Business Model
Customer relationships are the cornerstone of the Boeing business model. Customer relationships directly influence all of Boeing’s other key management processes, and they drive financial performance as well. That’s why customer satisfaction is a top priority for every team in Boeing—from design engineers to salespeople to product managers.
Customer Segments in the Boeing Business Model
Boeing is a global company that serves a wide range of customers. Boeing serves the commercial aviation industry and the military sector, and they also serve both the civil and defense markets.
The Boeing Business Model breaks down into three main customer segments: airlines, governments, and businesses (such as airlines).
In this article, we will look at one of the most valuable companies in existence, and find out what makes it so successful.
Boeing is the world’s largest aerospace company, and has built some of the most successful passenger aircraft. While its focus is on commercial aviation, Boeing does have a strong presence in military aviation as well. It also has a growing presence in space exploration with its satellite manufacturing business.
Boeing’s stock price is currently $301 per share (as of July 28th, 2018). That makes it worth more than $100 billion! That’s impressive for any company—especially one that isn’t publicly traded like Apple or Facebook—but it becomes even more so when we consider what kind of profit margin that would mean for an average sale price of $150 million dollars per plane (roughly twice as much as an Airbus flagship A380).
Conclusion
It’s a good idea to get inspiration from the best of the best: companies that are so successful, they’ve become household names. And what better business model than one belonging to a company that literally brings people together? Boeing has been around for over 100 years, and it shows no signs of stopping anytime soon. We hope you are now familiar with this amazing company and its fantastic business model!
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