DISCOVERY

Boeing SWOT Analysis

An In-Depth SWOT Analysis of Boeing

1. Background of Boeing

1.1. General Overview of Boeing

Company’s Name

The Boeing Company

Company’s Former Name

Pacific Aero Product Co.

CEO

David L. Calhoun

Company Type

Public

Year Founded

1916

Number of Employees

161,100

Founder

William E. Boeing

Headquarters

Chicago, Illinois, The Unites States


1.2. Introduction to Boeing

For the Boeing SWOT analysis, it is one of the internationally well-known designing, manufacturing, and selling companies of the versatile airplane, rockets, rotorcraft, satellites, telecommunications equipment, and even missiles. It is a Multinational Corporation of America. Moreover, this company is the world’s largest manufacturer of Aerospace. Based on 2018 revenue, this company has ranked the second-most most significant defense contractor in the entire globe. Even this company has become the largest exporter within the United States.


1.3. Development Timeline of Boeing

1915

William E. Boeing realized his passion for designing and constructing the B&W seaplane, and he incorporates a company named Pacific Aero Product Co. Later, he changed the name to Boeing company. He got his first break from the navy.

1923

The company got the second break from the U.S army. That is to develop the Army air service for fighters.

1930

Installed the first passenger train.

1940

First transoceanic flight becomes the largest aircraft of cities throughout the world.

1950 - 1960s

After WWII, the company enlarged its productions in regards to past aircraft of the military.

1980

Development of new models of commercial aircraft with high capacity. Also, become the International Space Station program, contractor.

1994

Boeing introduced the best contemporary commercial jet, the 777. The airline comes with computer-aided techniques. Later, the company again reinstalled a new version of it, 737.


2. SWOT Analysis of Boeing

Boeing Company is one of the recognized companies of aircraft manufacturers in this world. Nowadays, it is essential to sustain the company's rank just the same. Thus Boeing SWOT analysis would help the company to understand its current conditions. This SWOT analysis focuses not only on the internal factors but also on the company's external factors. Moreover, this helps determine the company's threats and opportunities and the manufacturer's strengths and weaknesses. It helps to upgrade the state of the company based on the analysis.

2.1. SWOT Analysis of Boeing in Detail

Strength:

For Boeing, the very first step is to expand their market into high purchasing capability areas. Market penetration seems important for majority of companies. Then, only innovation could make greater progress in this industry:

  • Since the company has the second-largest company for aerospace globally, its market share is substantial. Being the most significant aircraft manufacturing company in security, space, and defense, it has a contract of nearly billions of dollars. It influences the economy of the company;
  • The company manufactures its products with fine innovative skills. They keep themselves upgraded with the technological utilization in their products;
  • They serve a wide variety of products based on their needs, like commercial airplanes, corporate and personal jets;
  • The company has a strong relationship with the international and local suppliers of their company;
  • The company has an excellent and honorable bond with its partners, which has led them to the peak of success. It has a robust supply chain as it outsources 70% of its manufacturing. Thus, ensuring on-time delivery.
Weakness:

Besides its strengths, it is also crucial for a company to know its weakness. Once they identify the reasons affecting their growth, they can take the necessary steps to negate their impact:

  • The company's most unsafe design is 737 Max, which has crashed two times in the Java sea in 2019. The design is unsafe and has lots of defaults. It works as a significant weakness of this company;
  • The company highly relies on the manufacturers' heavy outsourcing;
  • The company has a massive dependency on contracts from the USA government. Around 27% of the company's revenue depends on the US government. Thus the political undulations affect the company a lot.
Opportunities:

The company's performance assessment shows how they can use the available opportunities in their favor. The company can concentrate on the ones that align with their strengths. As a top-rated brand, Boeing has several strengths which allow them to use many of the opportunities to ensure their growth:

  • The company has become the prime contractor of the USA government. Thus they got an offer of launching the US Space Force, which works as a massive opportunity for the company;
  • To supply the aircraft with well-established technologies, the company has to explore its new and innovative skills. It works as an effective means to get hold of the market share;
  • The technology of satellite demands helps them increase services very quickly. It works as a scope to upgrade their position. The aircraft is eco-friendly and pollution-free as well.
Threats:

With time goes by, more and more technological companies know how to make aircrafts, and even revolved their technique to make more eco-friendly airplanes, thus how to keep growth become a difficulty for Boeing company:

  • The default in 737Max becomes fixed to the customer's mind. Their perception has changed on the company. They have a fear of crash and lacks safety in their aircraft;
  • The 9/11 terrorist attack has a devastating impact on the public's mind. The decline of air travel has incurred much loss;
  • The intense competition between Airbus (EU) and Boeing (USA) has become bitter and complex. A single loss of customer may incur a huge loss for the company.

boeing swot analysis

Source:EdrawMax Online


3. Key Takeaways

The Boeing SWOT analysis points out the fact that the company has numerous scopes to perform better. No doubt, the brand is one of the most reputed brands in the aircraft industry, but a few steps with proper measurements and weighing the pros and cons may help grow their business manifold.

  1. The company needs to lower down the cost with the increase in productivity;
  2. A significant concern is required on the Total Quality Management. It turns to be helpful in the competitive market. Even this would help to increase the sales and market share as well;
  3. Since the company has a bitter competition with Airbus, they could offer some discount to the customers. It can be a counter-attack to the opponent company.

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