Comprehensive SWOT Analysis of Boeing: Opportunities and Threats

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Boeing, a major player in the aerospace industry. It begins with an introduction to Boeing's global presence, market share, and diverse operations across various countries. The analysis delves into Boeing's strengths, including its global reach, research and development capabilities, and strong customer base. Weaknesses such as labor issues, dependency on government contracts, and supplier bargaining power are also examined. The report then explores the opportunities available to Boeing, such as increasing demands in the commercial and defense markets, strategic expansion, and innovative advantages. Finally, it addresses potential threats, including the impact of the Boeing 737 MAX crashes, intense competition, and fixed-price contracts. The conclusion summarizes the key findings and offers recommendations for Boeing to mitigate its weaknesses and capitalize on its opportunities for sustained growth and success in the aerospace sector. The report is a student submission available on Desklib, a platform offering study resources.

SWOT analysis of Boeing 0
SWOT analysis of Boeing

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Contents
Introduction................................................................................................................................2
SWOT analysis of Boeing company..........................................................................................2
Strengths.................................................................................................................................2
Global presence and high market share..............................................................................2
Research and development.................................................................................................3
Product line and reputed customer base.............................................................................3
Weaknesses.............................................................................................................................3
Labour issues and high spending on pension......................................................................3
Dependency on government contracts................................................................................4
Bargaining power of suppliers............................................................................................4
Performance........................................................................................................................4
Technical issues and unethical behaviour...........................................................................4
Opportunities..........................................................................................................................5
Increasing demands.............................................................................................................5
Increasing defense market..................................................................................................5
Strategic expansion.............................................................................................................5
Innovative advantage..........................................................................................................5
Threats....................................................................................................................................6
Recommendation........................................................................................................................6
Conclusion..................................................................................................................................7
Bibliography...............................................................................................................................8

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Introduction
Boeing is an aircraft designing and manufacturing company. The company is one of
the world’s largest manufacturer of aircraft, satellites, rocket, defense, and security systems.
It was founded by William Boeing as Pacific Aero Products co. in 1916. The company has
more than 160,000 employees globally and operates in 65 countries with 11 development and
research centers around the world (Boeing, 2020).
This report includes a SWOT analysis of the Boeing company. SWOT analysis of a
company provides a management framework to benchmark its performance and business
compared to its competitors in the respective industry. The analysis of the Boeing company is
completed by considering its current position in the aircraft industry, revenue, and
competition. Company’s previous decisions and activities are also considered in the analysis
to highlight its performance.
SWOT analysis of Boeing company
The analysis of the Boeing is based on the company’s current position, its strengths,
weaknesses, threats, and opportunities.
Strengths
Boeing is one of the largest aircraft manufacturing companies in the world. It supplies
products to more than 65 developed and developing countries. The company’s strong position
in the industry helps it to grow and improve its brand image.
Global presence and high market share
The company has its operations in more than 50 countries and customers in 150
countries. Its operations, network, and a large number of outlets ensure easy availability of its
product to a large number of customers. The manufacturing, technology, and service
partnership and contracts of the company is with more than 20,000 suppliers and partners

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including governments and other companies. The company is the largest exporter of the
United States and works with the company’s many suppliers and partners closely to
manufacture the greatest products (Boeing, 2020). The international organisation of the
company that provides global functional supports can also be considered as a key strength of
the company. Boeing also maintains its relationship with its vendors, suppliers, customers
strongly, it helps the company to build global networks and partnerships (S&P, 2020).
Research and development
The company gives a high focus on activities of research and development. It
primarily focuses on its technology, engineering, and operations to provide better experiences
for the customer. The company maintains its position in the industry by focusing consistently
on innovation that helps the company to improve and expand its product line and services
(Coryhayward, 2020).
Product line and reputed customer base
The company has a wide range of product lines to meet a variety of customer’s
requirements. The product line of the company is enhanced continuously to meet the
competition requirements. The company has its customers from all over the world including
governments and airline companies. The company is successfully delivering its products in a
variety of fields to enhance its reputation and thus make loyal customers (Boeing, 2020).
Weaknesses
Labour issues and high spending on pension
The company faces time to time work stoppage as 38% of the company’s workforce is
part of a labour union. This issue of the company affects its growth by affecting its
productivity. This also affects its customer satisfaction as of late production cause late
delivery of the product. The company provides a pension to its resigned labours. The amount

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spent by the company to meet its commitments to laborers is reflecting on the decreased
benefit stake of the company (Ally, 2015).
Dependency on government contracts
The company’s major part of sales is dependent on the government of different
nations. The company’s long-term contracts with governments form political and economic
issues that may affect the company’s reputation as well as growth. Among all, the U.S.
government is the main customer of the company that provides a major part of the company’s
sales (Petrescu & Aversa, 2017).
Bargaining power of suppliers
The company’s production is dependent upon some strong suppliers that provide
integrated components and raw materials. The dependency of the company makes the
suppliers strong and provides them power to bargain accordingly. Productivity and delivery
can be affected if the demands of important suppliers are ignored (Coryhayward, 2020).
Performance
The earning from defense services, network, and space system and Boeing military
aircraft is gradually decreasing. This shows the weak operational performance of the space
and defense segment.
Technical issues and unethical behaviour
The company’s reputation and growth are dependent upon its practice of business
ethics. The two-consecutive crash of the Boeing 737 plane in October 2018 and March 2019
cause several deaths of airline customers and crew members (Johnston & Harris, 2019).
These two disasters caused the company’s reputation and heavy decrement in the benefit
stake. A small irresponsible behaviour of the company caused a temporary ban on the

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company. In the industry of aircraft and security systems, the reputation of the company
matters a lot for its growth and survival in the sector.
Opportunities
Increasing demands
In this century of globalisation, the demand for commercial airplanes is gradually
increasing. The need to connect and increase in numbers of travellers are creating demand for
new commercial planes (Eren, 2017).
Increasing defense market
The increment in defense and aerospace demands globally, creating an opportunity for
the company to grow and increase its revenue. New technologies, products, and services
launched in recent years is also acting as an opportunity for the company as it is attracting
more defense institutions and thus increasing the company’s network and customers.
Strategic expansion
The previous association of Boeing with different companies to complete new
projects can encourage the company to expand its operations globally. It can be done by
organically and inorganic global growth of the company (Boeing, 2020).
Innovative advantage
The company’s research and development segment focus on technical and operational
innovations to provide a better experience to its customers. Other than that, Boeing is the first
company that uses composite material in its manufacturing. It develops opportunities for its
human resources to develop more innovative ideas and technologies for sustainable business.
The environment-friendly approach of the company can work as an opportunity, as it ensures
the reputation of the company that minimizes the weaknesses in the field of competition
(Boeing, 2020).

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Threats
The consecutive crash of Boeing airplanes caused the lives of 346 people. It caused
financial, reputational and customer loss to the company (Cruz & Dias, 2020). The reputation
of the company and its product is vital in aircraft, security, and defense sector to grow
business and profit. The unethical behaviour of the company may cause its relationship with
customers and suppliers. It can also affect in its present and future orders.
Intense competition in the industry can be a treat to the company. The company is
already dealing with the issues of losses and the competition in the industry is growing
continuously. The global competition of Boeing such as Airbus company can act as a threat
to the company (Zhang, 2018).
Fixed price contracts of the company may also lead to lower margin profits and thus
affect the company financially. Approximately, the company’s 72 percent of total revenue is
earned form BDS business and this business works in a fixed price contract. The rise in pay
levels may lead to lower the profit margin of the company. Also, new technologies adopted
by the industry may affect the company’s growth in the medium to long term future.
Recommendation
 Labour issues can be decreased by adopting new technologies that are present in the
market or innovating a new one.
 The company should involve more than one supplier for raw materials and integrated
components.
 The dependency of government contracts can be reduced by focusing on commercial
sectors and supplying the defense and security products to several governments. It
will distribute sales.
 The performance of the manufacturing and distributing sectors can be improved by
revising the current strategy and rechecking the managing methods.

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 The company must practice business ethics and should neglect irresponsible
behaviour.
Conclusion
Boeing is one of the largest aerospace companies globally. It deals with defense,
space, and security systems. The company has its operations in various countries and
customers in more than 150 countries. By analysing the company, it can be said that Boeing’s
strength lies in its global presence and high market share. Its focus on research and
development helps the company in various operations. Also, it can be concluded that the
company’s foundation is strong that can deal with the threats of competition and overcome
from the weaknesses in the long run.

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Bibliography
Ally, S. (2015, April 9). A SWOT analysis of boeing. Retrieved from Marketralist:
https://marketrealist.com/2015/04/swot-analysis-boeing/
Boeing. (2020, January 1). Boeing. Retrieved from https://www.boeing.com/
Boeing. (2020, January 1). Boeing. Retrieved from Boeing.com:
https://www.boeing.com/commercial/customers/
Boeing. (2020, January 1). Boeing around the globe. Retrieved from Boeing:
https://www.boeing.com/global/
Coryhayward. (2020, January 28). Boeing2020: company profile and analysis. Retrieved
from Wattpad: https://www.wattpad.com/story/212713546-boeing-2020-company-
profile-and-swot-analysis
Cruz, B. S., & Dias, M. d. (2020). CRASHED BOEING 737-MAX: FATALITIES OR
MALPRACTICE? GSJ, 8.
Eren, U. (2017). Model predictive control in aerospace systems: Current state and
opportunities. Journal of Guidance, 1541-1566.
Johnston, P., & Harris, R. (2019). The Boeing 737 MAX saga: lessons for software
organizations. Software Quality Professional, 4-12.
Petrescu, R. V., & Aversa, R. (2017). When boeing is dreaming–a review. Journal of Aircraft
and Spacecraft Technology.
S&P. (2020, April). S&P. Retrieved from Swotandpestle:
https://www.swotandpestle.com/the-boeing-company/

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Zhang, B. (2018, May 2). How Airbus became Boeing's greatest rival. Retrieved from
https://www.businessinsider.in/finance/how-airbus-became-boeings-greatest-rival/
articleshow/64004041.cms