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IS 329 - Spring 2009 :: Blog :: Case 1-4 Boeing - Mark Young

February 19, 2009

This comment is based on Q2. 

The e-Enabled Advantage could prove to be the cure for the situation. The efficiency gains in Boeing’s day-to-day operations- made possible by the products and services of the e-Enabled environment- could help them survive in difficult times. At the same time, offering an integrated e-Enabled solution could help to develop its preference for Boeing’s jetliners. Boeing aimed to grow its services business around its core products. However, as Kettering put it, “Getting e-Enabled operations to work in an organization involves personalities, it involves careers and culture.”

 

I think Boeing in a market economy facing competition from Airbus, is concerned with delivering a service or product in the most profitable way. The key to profitability is to achieve a sustainable competitive advantage based on superior performance relative to the competition. Superior performance requires doing three things better than the competition. First, the firm must clearly designate the product/market, based on marketplace realities and a true understanding of its strengths and weaknesses. Second, it must design a winning business system or structure that enables the company to outperform competitors in producing and delivering the product or service. Third, management must do a better job of managing the overall business system, by managing not only relationships within the corporation but also critical external relationships with suppliers, customers, and competitors.

 

Within a given environment, marketing strategy deals essentially with the interplay of three forces known as the strategic three Cs: the customer, the competition, and the corporation. Marketing strategies focus on ways in which the corporation can differentiate itself effectively from its competitors, capitalizing on its distinctive strengths to deliver better value to its customers. A good marketing strategy should be characterized by (a) a clear market definition; (b) a good match between corporate strengths and the needs of the market; and (c) superior performance, relative to the competition, in the key success factors of the business.

 

However, strategic marketing decisions require inputs from corporate culture. Marketing strategists must take a close look at the perspectives of the organization before formulating future strategy. Strategies must bear a close relationship to the internal culture of the corporation if they are to be successfully implemented.

 

Posted by IS 329 - Spring 2009 - Mark Young


Comments

  1. Good points on the management perspective of implementing change - especially in describing the need to manage both the external relationships and internal ones for such a significant change to be successful

    JillJill on Thursday, 19 February 2009, 14:47 Pacific Standard Time # |

  2. Boeing should also measure how its e-Enabled Advantage is allowing free flow of actionable information and reporting of marketplace and operations so that it  can respond to changing priorities and turbulent conditions. Others include asset efficiency, factory uptime, cost savings, and customer excellence.

    Sam OjoSam Ojo on Thursday, 19 February 2009, 17:55 Pacific Standard Time # |

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