Can Boeing strategy help in increase the number of upcoming orders Case Study

Can Boeing strategy help in increase the number of upcoming orders - Case Study Example The company has a global customer base in around 90 companies. Talking in regards to the number of manpower and human resource engaged with Boeing, it can be said that the company employs more than 150,000 employees all over the world. The company also has a large network of suppliers, who are located in various corners of the world. It is very important to say that these suppliers plays a crucial role in the entire manufacturing process of the company, by providing various critical and key components that are required for smooth conduction of various production related operations in the global aerospace company (Annual report 2). It is important to mention that after the disastrous attacks on the World Trade Centre in the year 2001, by multiple foreign based Islamic terrorists, it can be said that the airline sector all over the world has undergone a huge change. Various key factors as well as the economics related to supply and demand of passenger traffic and other businesses have started to evolve over the last couple of years. This has resulted in the process of undergoing of significant change in the overall aviation sector. It is utterly relevant to state that major airline manufacturing companies like Boeing and Airbus have as a result designed various strategies to help them retain their competitive edge while maintaining profitability in the changing aviation business environment. This particular commentary will focus on analyzing the issues of strategic plan designed by Boeing to retain competitiveness in the market. For this purpose, the commentary will be done on the basis of data taken from various reliable secondary data sources. Findings It will be relevant to discuss the fact that in the scenario of a dynamically changing business environment, the firms and companies engaged and associated directly or indirectly with that particular sector have to ideate and formulate different strategies so as to cater to the changing and evolving needs of the sector. Talking on this note, it can be said that the airline manufacture of global repute has formulated and designed a new strategy that will help to adapt the company with the changing demands of the airline sector. Change of Capacity Plans A vital part of the new strategic plan of Boeing comprises of the company’s consideration of the need of the passengers travelling long distances all over the world. The airline has realized that passengers prefer to travel in direct flights connecting various long distances rather than travelling through compulsive breaks while switching multiple airlines. This has resulted in the company opting to back down from manufacturing airliners with larger capacities as compared to the already existing ones (Wyans, â€Å"Boeing and Airbus: Strategic Management in the Air Travel Industry†). Global Outsourcing strategy As a part of strategic plan over the long term, the global airline manufacturing company has decided to focus on the proc ess of restructuring its production operations by outsourcing them to various countries and emerging markets around the world (Raghu, â€Å"Boeing to buy products worth $600 mn from seven Indian companies†). It is important to note that by focusing on outsourcing the production of various key components, the airline company has attempted to lower the cost of productions, which will help the company to