1. Highly Skilled Managers The operation of the company will run smoothly. The performance of the company will improve and would lead the company to be successful.
2. Provide global customer support It would serve the customers better and it would be very convenient to those customers in other countries to ask for help. This would help the company to gain a better image due to the provided services to help the customers.
3. Outsourcing It can save time for the company to manufacture or assembly its products.
4. Emphasizing the product quality The durability of the company could last long. It gives the company to have a durability image to the customers. Customers would likely be satisfied and the company could gain some customer loyalty.
5. Recognized market leader Customers would likely choose them first as their priority.
6. Strong brand name Customers would easily associate the product. The brand name is instilled in the mind of the customers. Then, customers would think that the product is of good quality and the product would be their major choice when purchasing. The company would be able to generate higher sales for having strong brand name. It also has more advantage than the competitors in many areas.
7. Joint ventures/ Alliances with other aircraft companies It would help the company lessen its burden on producing other parts of aircraft. It aids on making the production of aircraft faster with the service of another companies. It would make the aircraft production for two aircraft companies sharing ideas for the betterment of the aircraft.
8. Many Features This will give higher probability that the customer would buy the product because of the extra features. This is absolutely an advantage for the company. If passengers are satisfied by this aircraft most probably that the airline would buy again from the same company of aircraft gaining customer loyalty.
1. Layoff technical workers It will consume lots of time to hire new workers and will spend lot of money to train them if there is a need to do so. In fact, hiring or choosing the right candidates is a critical operation of the company. This might threaten other workers for being the next candidate to be laid off. And this would lead to lower productivity. Mostly, new workers are to be oriented and supervised so it will take time.
2. Mismanagement of parts or raw materials When the parts are needed, they are mostly not available for the production process. Thus, while in process, a halt might happen. So, it is not efficient at all.
3. Conservative Company The company could not improve well on its system. It could not adapt to the changes in the environment that leads to failures. It believes that its system will work well when in fact there might be other effective ways. It might lose some opportunities that come its way.
4. High Production Cost It might lead to higher cost of product to be able to earn revenue. And it is not consistent to the goal of the customers. It might also lead to lower demand and lesser income.
5. Every 12 years of generating or launching a new aircraft design Competitors might be the first to launch new aircraft that threatens the company. And they might surpass the ability of the company in terms of generating sales. When the time the company launches the new aircraft, most airlines have already purchased the aircraft of its competitors so it would not need to purchase again.
1. Transferring technological know how to new products or business The company has lesser difficulties in operating the new acquired business for they are using the same method from their own company. This means that growth occur in the country.
2. Extend reputation to new geographic area The Boeing company not only would want their domestic country know them but also to other geographic areas. As of now, airlines are more familiar with Boeing than its competitors.
3. Acquisition of rival aircraft company It means that there would be fewer competitors. It would also strengthen the system of the company. Because of involvement of more employees. These employees would contribute knowledge and expertise to help the company grow. New way of running the business may supplement in the development of the company. I’m one way or another; it serves its purpose of improvement.
4. Expanding the company’s product line to meet a broader range of customer needs The company may gain advantage on investing in a different product line. Facing new competitors would be a challenge on the part of the company. There might be opportunities waiting for the company. It is also an additional income for the company if it becomes successful. And to meet the needs of the customers by providing new products would lead to an aggressive and healthy competition. It also helps build the economy of the country if there is new development in companies. And it also leads to high employment because there’s a need to hire more employees to implement the new business activities.
1. Competitor The competitor might out beat them and threat is higher for their market share. Lack of planning would have big impact to the company. They should anticipate for the rivalry between them. Timing and being competitive is important. If they are not met, this would incur loss in the company.
2. Trade Barriers They may encounter difficulties in the regulation regarding aircraft imposed by the country to which they import their products to. They may also need documents before releasing or create an aircraft.
3. Deregulation of Airlines The regulation of the company for its customers would compromise in order to gain favor of the customers. This may affect the standard operation of the company and may also result to disorganized process of company operation.
4. Terrorist Attack The horrible incident of 9/11 may also be a cause of not buying another aircraft. People of that country would not want to travel because they are threat by the terrorist attack. It would results to decrease the people who are traveling and lead the airline customers freeze to buy aircraft, since the people who travel has been reduced.
5. Supply and demand for the aircraft The more people that are not traveling, the more chances that the airline industry won’t buy new airplanes. This may results to low demand.