A 10 page paper discussing the path to development of the 777, a fully customer-driven product even suggested by customers. How much deviation from the norm – and therefore true innovation – can there be in constructing an aircraft that will hold 300 passengers and must transport them safely? Boeing showed in the design and production of the 777 that its reach can be more extensive than could have been envisioned. In large part, it has its customers to thank for its success. The paper examines the general environment, internal and external environments and provides a SWOT analysis of the project. Bibliography lists 9 sources.
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deviation from the norm - and therefore true innovation - can there be in constructing an aircraft that will hold 300 passengers and must transport them safely? Boeing showed
in the design and production of the 777 that its reach can be more extensive than could have been envisioned. In large part, it has its customers to thank
for its success. Situation Analysis External Environment Analysis At the time that Boeing announced its plans for the 777, both Airbus and McDonnell-Douglas
already had launched new aircraft for the 300-passenger class. Industry analysts were doubtful that the existing market could not adequately support two competitors in the class, and then Boeing
made late entry into it as well. Knibb (1990) writes that at the time, fuel prices were low and "the widespread development of hub systems had suppressed demand for
bigger jets" (p. 18). Boeing delayed its decision to enter this portion of the market until external conditions were more favorable and appeared to have promise of remaining that
way for the years that would be required for Boeing to move from product launch to delivery. By 1990, fuel prices were increasing by 18 percent annually, residential areas
around metropolitan airports were lodging and winning lawsuits focusing on noise, and carriers were becoming concerned about the age of their fleets (Knibb, 1990). The time appeared to be
the right one for Boeing to enter the 300 passenger portion of the market. General Environment Deregulation of the airline industry brought about
the intended results: fares were lower than before deregulation and more people were choosing to fly. Boeing predicted that in the 14-year period of 1991-2005 that passenger airmiles
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