Business Breakdowns Boeing (REPLAY): Turbulent Times - [Business Breakdowns]
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Apr 8, 2024 Explore Boeing's critical role in the aerospace industry and its evolution amidst growing challenges. Delve into the financial intricacies of aircraft production, where costs can skyrocket. Learn about the merger with McDonnell Douglas and its lasting effects on production and safety. Discover the complexities of aircraft manufacturing coordination, contrasting commercial aviation with the space industry. Finally, draw comparisons between Boeing's innovations and Apple’s product evolution, highlighting insights from both markets.
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Boeing and Airbus as National Assets
- Boeing and Airbus, while publicly traded, function as extensions of their respective national patrons (US and EU).
- They serve as instruments of soft power and commercial dominance.
Boeing's Business Model
- Boeing's commercial business model relies on two main drivers: growth in emerging markets and replacement in established markets.
- They aim for lower operating costs, not increased performance.
Aerospace Industry Structure
- High barriers to entry, like intricate global supply chains and long-term customer relationships (20-30 years), solidify the duopoly.
- Disrupting this structure is difficult and can lead to painful consequences, as seen with Boeing's 787 Dreamliner development.