Boeing SWOT Analysis 2021

Boeing SWOT Analysis 2021

This is a thorough SWOT study of Boeing. It seeks to determine the strengths and shortcomings of Boeing. In addition, it tries to identify opportunities the company could pursue and the dangers it needs to create strong walls to defend against. 

Boeing is among the largest aerospace firms worldwide. Its headquarters are in Chicago in the USA.

Boeing SWOT Analysis

Background of Boeing

Company’s Name The Boeing Company
Company’s Former Name Pacific Aero Product Co.
CEO David L. Calhoun
Company Type Public
Year Founded 1916
Number of Employees 161,100
Founder William E. Boeing
Headquarters Chicago, Illinois, The United States

Introduction to Boeing

In an analysis of the Boeing SWOT analysis, it is among the most recognized manufacturing, designing, and selling firms of the multi-faceted airplane rockets, rotorcrafts, rockets satellites, telecom equipment, as well as missiles. 

It is a Multinational Corporation of America. In addition, it is the largest in the world of Aerospace. Based on revenue for 2018 the company is the second most important defense contractor across the world. This company is also the top exporter in America. The United States.

Boeing SWOT Analysis 2021

SWOT Analysis provides a method for analyzing the company’s strengths as well as weaknesses, opportunities, and threats. 

The aim of a SWOT analysis is to analyze the external and internal environment of an organization by the analysis and identification of the weaknesses and strengths of a company as well as the threats and opportunities to which it is subjected.

Strengths In The SWOT Analysis Of Boeing

Boeing SWOT Analysis

For Boeing, the first step is expanding its market to high-buying capabilities areas. Market penetration is crucial for most companies. The only innovation that will improve the efficiency of this sector:

  • High Market Share Boeing has the second-largest aerospace company globally, but it was defeated by its arch-rival Airbus at the beginning of 2020. It is among the biggest aircraft makers in space, defense, and security sectors, with contracts that amount to hundreds of billions. The size of the company is accompanied by economics in scale and influence in addition to unfair disadvantage.
  • Highly innovative: The aircraft manufacturer is the most ingenious player in the business and sets the standard for others to follow. Boeing revolutionized the industry of airline travel by introducing carbon-composite composites that were lightweight and advanced fuel efficiency technology that allowed long-distance, non-stop flights.
  • The largest variety: Boeing caters to a large variety of customers’ wants including commercial airlines, corporate jets as well as small personal jets. Anyone who is interested in an aircraft can purchase the plane from Boeing and won’t be denied or sent to Airbus.
  • Strong Relationships From local and international suppliers as well as allies, Boeing has nurtured strong and lasting relationships. This is due to the company’s determination to pay tribute to and acknowledge the suppliers’ contributions to its growth.
  • Strategic Partners in a highly technological business, success is contingent on the number of partners as well on their technical proficiency. Boeing has collaborated with ingenious technological giants in related sectors from all over the globe.
  • Secure Supply Chain Making a 787 Dreamliner requires hundreds of components that are sourced from countries like Sweden, France. Italy, South Korea, Japan, Australia, China, and Canada. It outsources the manufacturing for 70% of its components and relies on an extensive supply chain to ensure prompt supply of every component.

 Weaknesses In The SWOT Analysis Of Boeing

Boeing SWOT Analysis

Apart from its advantages, it is essential for any company to be aware of its weaknesses. When they have identified the causes hindering their growth, they are able to make the necessary changes to minimize their impact:

  • Unsafe and flawed design: In 2019, Boeing 737 Max crashed twice in the Java Sea and Ethiopia killing all passengers. Both planes were affected by similar malfunctions that were caused by an error in the design of Boeing and its 737 Max. Boeing’s unsafe and flawed design of 737 is a significant weakness.
  • Over-outsourcing Boeing is heavily dependent on outsourcing the manufacturing of components and parts of its aircraft. The extent of the outsourcing by Boeing was exposed in the past few days following Spirit laid off 2,800 workers who were mostly working on the ailing 737 Max.
  • Dependence of US Contracts: While the majority of other aircraft manufacturers depend upon airlines Boeing relies on agreements with government contracts from the US government. With around 25% of their revenues being derived from US contracts with the government, Boeing has to be at the mercy of US policies and economics within the American market.
  • Supply Chain Problems As with any global business, Boeing also faces several supply chain issues due to its management practices. This is a significant problem, particularly for Boeing as it heavily relies on its suppliers.
  • Poor labor management: The decision to dismiss employees who joined a union is ineffective when it comes to the management of labor. This is exactly the kind of thing Boeing has done to staff within South Carolina as part of its attempts to suppress the formation of a new union.

 Opportunities In The SWOT Analysis Of Boeing

Boeing SWOT Analysis

The performance evaluation of the company reveals how they can leverage the opportunities available to them to their advantage. The company is able to focus on opportunities that are aligned with their strength. As a brand that is highly rated, Boeing has several strengths that allow them to take advantage of all of the opportunities available to grow their business:

  • Concentrate on Space Force: The launch of the US Space Force offers Boeing the possibility to become the principal contractor of the US government. First, it must be able to beat Lockheed Martin and Northrop Grumman.
  • Make the most of its unique advantage: An effective way to increase market share is by offering cutting-edge solutions. Boeing can capitalize on its innovation advantage to provide air mobility tomorrow and entice customers away from its competitors.
  • Increased Need for Satellites There is a growing need for satellite technology as well as launch and support services are rapidly growing. Boeing is perfectly placed to take advantage of these opportunities.
  • Create electric Plans: Boeing can utilize its resources and decades of experience to provide air taxis that will serve the soon-to-be realized smart cities. Boeing partnered in partnership with Uber to develop air taxis and could focus on similar projects or even manufacture air taxis on its own.
  • flying Cars: Expanding into various niches has a greater possibility of growth but requires solid partners. For example, Boeing partnered with Volkswagen (Porsche) to develop flying vehicles for the super-rich.
  • More Eco-Friendly Aircraft: To contribute global efforts to fight environmental polluting and the effects of climate change Boeing has embarked upon a goal to reduce the emissions of their aircraft. It is testing modern technology to reduce noise and emissions pollution.

 Threats In The SWOT Analysis Of Boeing

Boeing SWOT Analysis

As time passes increasing technological firms are able to create aircraft. They’ve even have adapted their methods to produce more sustainable aircraft and thus, how to maintain growth is a challenge in the Boeing company:

  • Intense Competition Airbus, as well as Boeing, are two major competitors, and they have support from their respective governments, the EU in the EU and US respectively. The competition within the aviation manufacturing industry is more difficult as losing even one customer or order can lead to losses of millions.
  • public perception: After an aircraft, the model is subject to a fatal crash, and regulators have grounded the whole fleet of aircraft due to safety issues, the public may always identify it as the lack of safety. It’s very difficult to convince people that the issue with the 737 Max has been corrected.
  • the Pandemic: With the suffering, devastation, and deaths caused by the pandemic, the majority of people are hesitant about taking a flight. The immediate danger will be the pandemic is likely to cause financial ruin for many airlines and force massive cancellations of orders for Boeings.
  • A looming recession: Countries across the globe are currently in the midst of a recession. Commercial customers of Boeing (for instance, Southwest airlines) are struggling to keep their businesses afloat during the midst of economic downturns because consumers will avoid travel for non-essential reasons or opt for less expensive options such as buses and trains.
  • Terrorist Attack The threat posed by terrorist groups is a threat to all airlines and aircraft manufacturers. After the aftermath of the terrorist attack on 9/11, the air travel industry suffered dramatically, and Boeing and Airbus lost a lot of money.
  • Trade War Airbus, as well as Boeing, are trapped within the EU-US trade war. With both sides of the Atlantic vehemently protecting their respective interests, tensions could flare up forcing the EU to block Boeing’s entry into the huge European market.
  • Cybersecurity Threats Cyber-attacks from terrorists, rogue nations, and cybercriminals are an enormous threat to the world’s airlines. The security systems at Boeing were leaked and exposed the weaknesses and vulnerabilities of 787 that could be used by cyber-terrorists.

Limitations of SWOT Analysis for Boeing

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely to plan strategic strategies However, it has its fair share of drawbacks.

  • Certain aspects or capabilities of an organization can be both a strength as well as a weak point at the same. This is among the main drawbacks that SWOT analysis has. Changes in environmental regulations could be an issue for the company but however, it could also be an opportunity in the sense that it can allow companies to be on the same level or gain an advantage over their competitors if they are can develop their products more quickly than its competitors.
  • SWOT is not able to show you how to gain competitive advantages It is not a strategy to gain competitive advantage, therefore it should not be a complete solution.
  • The matrix serves as an initial point of reference for discussions on how the suggested strategies might be implemented. It also provided an evaluation window, but it did not provide any implementation plan that is based on Boeing’s strategic competitiveness. Boeing
  • The SWOT model is a static evaluation that analyzes the existing conditions and a small number of potential modifications. When circumstances, capabilities, as well as threats and strategies, evolve, the dynamic of the competitive landscape cannot be analyzed in the form of a single matrix.
  • SWOT analysis could cause a company to focus too much on the importance of a single external or internal aspect when formulating strategies. There are interrelations among the most important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

Weighted SWOT Analysis of Boeing

Due to the previously stated weaknesses of the SWOT analysis or matrix, the management of the corporate determined to give an appropriate amount of weightage for every internal strength and weakness of the company. 

They also consider the likeliness of events that will occur in the near future, and what the effect will be on the company’s performance.

This technique is known as a weighted SWOT analysis. It’s better than basic SWOT analysis since using weighted SWOT analysis Boeing managers are able to focus on the most crucial aspects and eliminate the less important ones. 

It also eliminates the long list issue that causes organizations to make a lengthy list but not addressing any is considered to be important.

References:

BBC (2021) Boeing to pay $2.5bn over 737 Max conspiracy, available at: https://www.bbc.co.uk/news/business-55582496 (accessed on 4th June 2021)

Boeing (2021) Our company, available at: https://www.boeing.com/company/ (accessed 10 June 2021)

Hornyak, T. (2021) The flying taxi market may be ready for takeoff, changing the travel experience forever, available at: https://www.cnbc.com/2020/03/06/the-flying-taxi-market-is-ready-to-change-worldwide-travel.html (accessed 09 June 2021)

Leggett, T. (2021) Boeing’s 737 Max aircraft under scrutiny again, available at: https://www.bbc.co.uk/news/business-57028687 (accessed on 4th June 2021)

Mazareanu, E. (2021) Boeing’s worldwide revenue from FY 2007 to FY 2020, available at: https://www.statista.com/statistics/264374/boeings-worldwide-revenue/ (accessed 10 June 2021)

The Economist (2021) Can Boeing fly without help from government? available at:https://www.economist.com/business/2021/01/27/can-boeing-fly-without-government-help (accessed on 4th June 2021)

Conclusion

Boeing is a well-known brand, not only in America but also around the world. Boeing has a highly regarded position on the market. Although it may be confronted with dangers and weak points there is nothing that could seriously derail it from the spot currently.

Boeing offers a variety of possibilities to be the largest brand in the marketplace All they need to be able to do is keep up with the current trends in innovativeness and innovation.

SWOT Analysis can be described as an instrument that managers and administrators employ to analyze their institutions or companies on the most fundamental scale. Conducting a SWOT analysis can prove instructive and offer numerous different perspectives. 

Looking at other SWOT analyses, particularly of your competitors’ firms, could assist in understanding the market and the place your business takes in it. 

This is the reason we have several SWOT analysis examples that are available on our site to browse through.

Certain people may find it difficult to complete the SWOT analysis and might require assistance in understanding the procedure.

This is why we’ve created the guide as well as templates to help you get an understanding of the process of performing a SWOT assessment for your firm, business, or even an institution.

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