The Boeing Corporation 2007: Consolidating Success or Burying the Competition?

The Boeing Corporation 2007: Consolidating Success or Burying the Competition?

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Abstract

This case study focuses on the decisions that Boeing CEO Jim McNerney must make in the face of the unprecedented success of his company's new 787 Dreamliner and the equally unprecedented difficulties encountered by Boeing's arch-rival, Airbus. On the one hand, McNerney must see to it that Boeing does not make the same mistake it has made repeatedly in the past of expanding production beyond its ability to manage, with disastrous consequences for delivery schedules and cost control. On the other hand, having been given a virtual monopoly in a key sector of the market for anywhere from four to six years, Boeing has the opportunity with the right new product decisions to relegate Airbus permanently to what one industry expert has called a “niche ...

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