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

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 manufacturer” status.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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