Boeing Competitive Advantage Essay

691 words - 3 pages

Boeing 787

Comparative advantage, sometimes referred to as location-specific advantage, influences the decision of where to source and market. It is based on the lower cost of a factor (labor, for example) in one country relative to another, favoring industries that use this factor intensively (Kogut, 1985).
In order to survive in the global airline industry, and compete with the internationally based Airbus, Boeing needed to shift its strategy and utilize the comparative advantage of lowering costs through the use of global partnerships and technology.
Pioneered in 1917, Boeing defines itself as “the world's largest aerospace company and leading manufacturer of commercial jetliners ...view middle of the document...

The approach Boeing took to develop this new strategy was the design and production of a new jet, the 787. Scheduled for delivery beginning in 2008, the Dreamliner provides passengers with a better flying experience and operators with a more efficient commercial jetliner (Boeing 787, 2015). Boeing relied heavily on technology and global partnerships to design the new jet in the most economic and cost efficient way as possible. According to an article that discusses the new strategy, Boeing’s vice president and CIO, Steve Griffin gave insight to the process and how much it involved their global partners. "We have different people building different pieces by creating data that is assembled and checked in real time," says Griffin, who is responsible for the computer systems that make this process possible. Ultimately, completed sections of the plane will be picked up by three specially fitted 747s and carried to a Boeing facility in Everett, Wash. Thanks to the online modeling, Boeing can now trust its global partners with the process of creating entire sections of the plane, from concept to production. The design is...

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