Boeing 787 Essay

572 WordsSep 25, 20113 Pages
Boeing 787 is the first midsized craft with long-range capacities. It has more (over 400) non-stop city pairs and its flying risk is reduced. This new Boeing airplane is designed and assisted by a highly experienced executives teams to bring fuel efficiency, offer more cargo revenue capacity, more capacious and comfortable designs, and have more acceptable noise level. Moreover, the Boeing 787 was made by advanced composite materials, and it also has built-in sensors which can lower maintenance costs of corrosion even under the increased cabin humidity; Also, it begins to use two types of engines which not only can lower the transportation costs but also attract more financiers and leasing companies. In summary, Boeing should have a bright future because it’s trying to respond to the industry dynamics by increasing revenues while lowering costs, and has taken its customers into considerations. Except for the innovation of the airframe itself, this time Boeing depends highly on its subcontractors and suppliers from all over the world. It delegates major (70%) responsibilities of development and manufacturing to foreign suppliers, and air-transport them to the final assembly plant in the US. This idea sounds effective because those suppliers are stimulated to both minimize costs and offer valuable expertise and knowledge to Boeing. However, Boeing really ignores something important that challenge them. Firstly, After the 911 crisis, Boeing is in the midst of a major transformation and has sold its main manufacturing plants. This means Boeing is forced to rely solely on its new global suppliers. However, those subcontractors might not fulfill their tasks on time either because they are not experienced in structure development or they have some problems of supply chain. Secondly, Boeing is making its confidential information known to its strategic partners,

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