International Expansion

Running head: INTERNATIONAL EXPANSION
International Expansion
Name of the Student
Name of the University
Author Note

1INTERNATIONAL EXPANSION
Introduction
Boeing is an American jet manufacturing firm providing its goods and services to
countries situated in different parts of the world but headquartered in Illinois, Chicago. It is a
multinational firm that is involved with designing, manufacturing and selling aircrafts all over
the world. It is one of the largest aircraft manufacturers in the world and the largest exporter in
the United States considering USD value. China on the other hand has always been a market
aimed by many aircraft manufacturers to develop some part of their manufacturing and
production units (Boeing.com 2018). Studies assert that even though the economy of China has
slowed down, jet manufacturers still think that it has one of the highest priced markets for selling
its aircrafts. Aircraft manufacturers are increasingly selling aircrafts and competing amongst
each other in order to gain larger shares of the market. This report essentially considers the case
of Boeing (Boeing.com.2018). The report is concerned with studying and analysing the strategies
and techniques undertaken by the firm to expand the growth into the Chinese economy while
remaining ahead of its competitors.
Discussion
Problem identification
Unlike before, the current situation persisting in China is such that it is improving in
leaps and bounds and the economy is booming slowly and gradually. According to reports and
experts, the demand will increase even more in the next twenty years and will cause China to
emerge as the third largest market in the world following the United States and Europe. This is
the major reason behind, jet manufacturers targeting the market of China as compared to most
other countries in the world. It is important to note here, in this context that even though the

2INTERNATIONAL EXPANSION
existence of institutional barriers might be the source of challenges for the aircraft
manufacturing firms willing to expand in China, the government of China is trying to promote al
the cooperation possible to enable faster growth of these firms. Initiatives taken up the
government of China also include leaving some parts of the air space of the country for the
activities and the initiatives of these jet manufacturing and selling firms. In addition to this, the
country’s growth is also being expected to propel because of the investments and activities of
these aircraft manufacturing firms in the country. In other words, the situation of the economy in
China has improved after the financial crisis that occurred in the year 2008 and now the situation
existing in the country is conducive to the growth of the aircraft-manufacturing firms. The
President of China Xi Jinping, has in fact, helped in clearing the market by driving off some
state owned enterprises in this sector to make the markets free for the foreign countries so that
greater amounts of foreign direct investments can be obtained and can be used for re-investment
by the country.
Problem analysis
As mentioned before, Boeing is an aircraft manufacturing firm based out of America and
is involved with manufacturing diverse varieties of products including missiles, security alarms,
airplanes and rockets as well. It has operated for over a period of 80 years now and has been able
to continuously cater to the changing demand patterns of the customers all around the world. To
continuously cater to the changing demands and needs of the customers, the firm has always
used the most innovative technologies. The firm has recently been expanding into the country of
China. Boeing Business Jets are being increasingly produced and sold in China. The firm has set
up its first overseas manufacturing unit in China and has delivered around a total of 100 Boeing