Examining Growth Strategies of Boeing in Emerging Economy of China

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
Name of the Student
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Author Note

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Total words- 3000
Topic- Examination of the growth strategies adopted by the organization to pursue
internal growth opportunity to an emerging economy opportunity
Organization: Boeing
1. Introduction
The case study analysis is particularly based on the emerging economy in China
providing potential business opportunities to both local and international airlines. The case
study analysis includes business and marketing approaches of Boeing- aircraft manufacturing
company. Boeing is determined to incorporate multi-national business approaches to use the
growth opportunity provided by emerging economy in China. The major purpose of the study
is to examine the business growth strategies adopted by Boeing to pursue internal growth
opportunity to the emerging economy of China. The case study implies that due to the
economic stability in the recent time in China, the both international and local airline
organizations are planning to keep their footstep in China. Initially, processing the airline
services in China was difficult as airline services in China are usually controlled by military
and there are several taxes and duties that are imposed on such businesses.
2. Firm’s current strategic background
Boeing is known as world’s largest aerospace manufacturing of commercial jetliners,
space and security systems. The organization also provides aftermarket services. It has been
identified that Boeing is America’s largest manufacturing exporter, the organization supports
airlines and United State as well as allied government customers in more than 150 nations. It
has been identified that Boeing products as well as tailored services which involves
commercial as well as military aircrafts, electronic and defence system. The major marketing
stand taken by Boeing is development of a broad range of products and services for multiple

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customer groups. When it comes to acquiring a new market, Boeing particularly pay heed to
a diverse categories of services. On the other side Taneja (2016) commented that Boeing
prefers to operate in critical businesses with the help of its mainline businesses. It has been
identified that the business has extensive presence in commercial security in the capital
services for supporting customer purchases. The major competition, Boeing faces in the
segments such as commercial jet aircraft as well as airline sector. When it comes to analysing
customers, Boeing uses a large range from different organizations from different aviation
sector, government of different nations, space and research settings who have diverse as well
as differentiated needs. As China is economically a potential market, this range or group of
customers may change or increase in the airline sector of China.
3. Problem identification
Even though China has potential business opportunities and observed a rise in the
economy, all major airline service providers from the global market are trying to extend their
focus on the virgin skies of China. Nonetheless, the market has institution-based condition
controlling the airline services and flight through a complicated process due to the
enforcement of tax and burdensome duties. In addition, particularly the business air jets are
only entitled to two take-off slots an hour, which is making a difficult scenario for the
services providers when dealing with the mass-crowd of international visitors (Wu and Maher
2016). On the contrary, the government has become little stiffer with respect to the allowance
of state-owned service providers. For example, it is found in the case study that President of
China ordered special provisions which causing a shift in the existing services of the
organizations in China. State owned enterprises used to make u almost 15% of business jet
market in China but the percentage now went down to 5%.
(Analysis)

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Although the airline service providers are supposed to deal with compliance and trade
regulations, due to the economic stability, Chinese government has offered a glimmer of hope
for airline trades as a significant stand has been taken for the establishment of non-airline
aviation and businesses jets are entitled to little more space. However, this opportunity also
attracts the other global airlines from Europe and America (Morrison and Gillen 2017).
Taneja (2016) commented that complying with the newly developed policy will not be an
easy choice of implementation, as entry of other airline agencies could generate another
cumbersome process. Moreover, accessing the China market may also be a difficult
challenge, as using the back-up of resources and capabilities, each business jet market is
trying to beat each other and excel. Particularly, the major jet maker such as Beech Hawker,
Cessna and Gulfstream of United State, Dassault Falcon of France are the conventional
competitors. Currey (2017) also commented that it is quite difficult for any business jet
maker irrespective of being local and international as China’s jet market is vastly acquired by
Gulfstream and the organization has the biggest market share. Gulfstream has been able to
strengthen its market share as all of its approaches are market-oriented and China
governments are in favour of market oriented efforts. Thus, when accessing the China
market, Boeing needs to consider the market oriented efforts which might help to gain
governmental backup.
4. Resource and capabilities of Boeing
It has been identified that Boeing’s resource and capabilities are developed to aligned
with a set of objectives that include continuous improvement, extremely skilled as well as
motivated staff and technological excellence, financial strength as well as commitment to
future integrity. According to Nason and Wiklund (2018), the competitive advantage is
gained on the basis of utilizing the bundle of unique internal resources that lead to advanced
and developed distinctive capabilities as well as the core competencies. Pearson, Pitfield and