Case Study: SWOT Analysis - Market Analysis of Boeing by Myassignmenthelp.com
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2. Background
• Tremendous downturn in Worldwide travel
• On April 27, 2000, Boeing announced to offer high-
speed connectivity to aircrafts under a new
brand, Connexion by Boeing
• The events of Sept. 11, 2001 and SARS crisis.
• Made its debut aboard Lufthansa Flight 452 on
May 17, 2004.
• Developed mobile based, global broadband
communication network.
• Goal: High speed communications in the sky
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3. Market Analysis By Boeing
• 75% of the business travelers carried laptops on
flights
• 62% of US frequent business travelers were interested
in in-flight broadband services
• About one fifth of the different airlines’ frequent fliers
were willing to pay as much as $35 per flight for a
high-speed service offering
• 3% of the frequent fliers would be extremely likely to
switch carriers for broadband internet access
• 6% would even abandon frequent flier programs in
ordWer to obtain connectivity
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5. • Connexion by Boeing can offer
other benefits:
• Increased productivity for airlines
• Airplane maintenance
• Operational efficiency opportunities
for the airlines
• Medical diversions
• Enhanced service
• Greater security
• Competitive differentiator
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6. Analysis of the e-Enabled
Advantage
• Will serve as a sustainable advantage
– Strategic positioning
– Innovation ability
• Provides stakeholders with resources to reduce costs
– By increasing operational efficiencies, Boeing can
develop a virtuous cycle
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7. Sustainable Competitive
Advantage
• Provides information-enabled products and
services
– Information is easily customized
• Drives asset efficiency, cost savings, and
revenue growth
• Unpredictable lifespan
– As long as Boeing maintains innovation
capabilities and leads technology growth
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8. IT Utilization
• IT will serve as the main driver of Boeing’s
sustainable advantage
– Employ highly competent IT leaders
– Institute a lean, yet agile infrastructure
• Embed IT into existing products/newly launched
services
– Will drive revenue growth
– Creates high switching costs
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9. Recommendations
1. Boeing must implement the consultative selling
approach and provide services that move toward
a partnership relationship with customers. This
involves altering the business plan to fit the
demands of the environment.
2. Boeing needs to emphasize the importance of
communicating the value of e-Enabling to their
customers.
3. Boeing must utilize large scale system integration
to equip all products with the IT capabilities
associated with e-Enabling.
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10. CONCLUSION
Connexion has redefined the airline industry by
improvising IT efficiency.
Connexion benefits the passengers, flight and cabin
crews, airline operations, system performance and
the industry.
“It’s going to happen, and the mindset is, if Boeing
doesn’t do it first, someone else will.”
“Right now, it’s sort of like a very pre-emptive chess
game. The e-Enabled environment is going to happen,
and the question is, are we going to be following or
leading?”
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