Customer Service and Role Play: A Boeing Company Analysis Report

This report provides an analysis of Boeing's customer service strategies, focusing on market segmentation, promotional approaches, and competitive positioning. It highlights Boeing's segmentation strategy through geographical areas and demand patterns, targeting airlines based on capacity and distance needs. The report discusses innovation strategies, such as the Dreamliner, and investments in R&D for environmentally friendly aircraft. It also addresses competition from Airbus and the need for digitization and 'green' operations in the airline industry. Recommendations include developing environmentally friendly planes and digitally optimized aircraft. Desklib offers a platform for students to access similar past papers and solved assignments.

Customer Service and Role Play 1
BOEING Company Customer Service Analysis
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BOEING Company Customer Service Analysis
Introduction
Boeing is literally considered as one of the main leaders of aerospace companies in the
world where innovation is the prime factor which is utilized by the company to attract customers
and meeting market requirements. Boeing has a market share of about 43% distributed in more
150 countries all around the world. The company has also employed more than 140,000 people
who are distributed into three major categories of the company line of business which are;
Defense, Space & Security, Commercial Airplanes, and Boeing Global Services (Yee Liau and
Pei Tan, 2014). Over the past few years, Boeing has shown a detailed knowledge of customer
and equipment expertise where the strength has been reflected by the continuous growth of the
company portfolio.
Boeing’s Promotional Strategy - Segmentation, Positioning, and Targeting Strategy
Boeing market segmentation is majorly carried out through geographical areas where
North America and Europe are considered as one of the main markets of the company. This is
mainly due to the increasing growth and stability of the two regional economies. According to
Boeing, the demand patterns are one of the most convenient means which the company uses in
drawing market segmentation. For example, single-aisle airlines are commonly ordered in Latin
America regions due to the popularity of short routes. The use of geographical segmentation has
been reported by the company to have a wide success especially in determining other
probabilities that may be useful in its promotional approaches (Ryan and Silvanto, 2013).
In accordance with the characterization of Boeing client’s, there are only two main
criteria’s which are majorly applied when dealing with airline business which majorly comprises
of capacity and distance. According to Boeing, the majority of its customer’s look forward to
having very effective flights for short distances and of minimum capacity. From this position, the
company has received and delivered over 8,000 Boeing 737 planes. The performance of these
products and services have been reported by the company to have a very wide success with a
continuous annual increase in demand (Leong, Hew, Lee, and Ooi, 2015). On the other hand,
Boeing company has also a large market positioning in the long distance and high capacity
travels. The main products in this segment comprise of Boeing’s 777 families which have the

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capacity to accommodate approximately 451 passengers and covering a distance of 11,029Km.
The aspect of long distance is considered to be costly to customers, therefore, the reason why the
company focuses on incorporating the use of high capacity thus to minimize service cost.
The issue of customer targeting in the airline industry is considered rather bit uncommon
due to the nature of the transaction and revenue margins. Customers are considered to be
generally very knowledgeable on the issue of cost of production making the company reconsider
on other approaches of attracting clients i.e. offering trade discounts and other incentives which
may likely strengthen the relationship. On the same note, the main targeting method normally
used by Boeing is the retention of its main clients where commercial airlines are the largest
market of the company (Goetsch and Davis, 2014).
Measures in Place in Ensuring Promotional Strategies Are Up to Date
As stated earlier, in order to meet the growing demand in the airline industry, Boeing
main development approach has been majorly concentrated in innovation strategy. Through this,
the company has implemented various programs such as the Blue ocean strategy which brought
about the introduction of mid-size planes with a capacity of holding 200-300 passengers. An
example of this product is referred to as the Dreamliner or Boeing787 (Rosenblatt, 2013). The
Dreamliner is described as the ultimate solution to most of the client’s needs which generally
comprise of low fuel and maintenance cost, ability to hold more passengers, faster in speed, and
travel long distances. In regards to enhancing the continuous innovation and making sure its
promotion strategies are up to date, Boeing has invested intensively in R&D where last year the
company used over 3.1 billion U.S. dollars. The main R&D approach by Boeing to manufacture
more environmentally friendly and energy saving planes due to the current changing climate
changes and increased customer awareness of the same issues (Ryan and Silvanto, 2013).
Current Competition and Alternative Products or Services in the Market
There are various externalities involved in the airline industry today majorly in the
digitization of plane operations. This has been considered as one of the major issues which
customer needs have not been properly met yet. Boeing and its main competitor, Airbus, have
subsequently been urged to incorporate technology in their inventions that will be able to
ultimately meet the growing changes in the airline industry. The digitization of the planes should

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have the ability to apply the technology from predictive maintenance to autonomy and with this,
a lot of current problems will be highly eliminated (Rosenblatt, 2013). The aspect of ‘green’
operation is another growing customer need that has not been adequately faced today. However,
Airbus has continued to pose a continuous competition to Boeing where it has produced more
innovative products and it has also been reported to have more deliveries than Boeing in 2018.
The issue of faulty products in the aerospace industry is a highly unwelcomed issue as safety is a
prime factor (Shamma and Hassan, 2013). In the event of undesired outcomes from products
delivered by the company, the company will be liable for meeting all the undesired cost and the
maintenance charges.
Recommendation and Conclusion
Some of the procedures that I would like to be in place in the approach of improving
Boeing operation and promotional strategy is the development of environmental friendly planes.
The issue of environmental issues is becoming an increasing threat to the airline and transport
industry and due to this necessary approaches are required for future sustainability. This cause of
action should be widely integrated into the entire Boeing company management team thus to
impact the required changes in the industry. In summary, Boeing has been able to meet most of
its customer demand where Dreamliner is an example of one of the ultimate products the
company has been able to develop (Goetsch and Davis, 2014). The aspect of the products
enhancement should be focused on developing digitally optimized aircraft, environment-friendly,
and more customized.

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References
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: Pearson.
Leong, L.Y., Hew, T.S., Lee, V.H. and Ooi, K.B., 2015. An SEM–artificial-neural-network
analysis of the relationships between SERVPERF, customer satisfaction and loyalty among low-
cost and full-service airline. Expert Systems with Applications, 42(19), pp.6620-6634.
Rosenblatt, H.J., 2013. Systems analysis and design. Cengage Learning.
Ryan, J. and Silvanto, S., 2013. The critical role of corporate brand equity in B2B marketing: An
example and analysis. The marketing review, 13(1), pp.38-49.
Shamma, H. and Hassan, S., 2013. Customer-driven benchmarking: A strategic approach toward
a sustainable marketing performance. Benchmarking: An International Journal, 20(3), pp.377-
395.
Yee Liau, B. and Pei Tan, P., 2014. Gaining customer knowledge in low-cost airlines through
text mining. Industrial Management & Data Systems, 114(9), pp.1344-1359.