Crisis Looms the Dream Liner Company - Research Paper Example

Due to the inconsistencies and stalled activities caused in its operations, Boeing may certainly lose its credibility in the international market if it jets out of the industry. Gaining ground in terms of positioning and retargeting will be a daunting task to sort out or achieve. For example, the directive from the Federal Aviation Administration in the US to ground operations of the Company’s series due to the accident after an emergency landing in Japan would have an economic impact not only on the Company but also the entire US economy that derives part of its breath from the Company’s operations (Jane).

These events will cause a wound into the country’s economy and may suffer dangerous blows in its economic standing thus should get a swift address to prevent more damage to the already improving status. More and more customers would lack the value and morale they had in the Company that was once reliable and effective to rely on. The crippled loyalty will ultimately direct potential passengers to the competitors hence leading to huge losses of revenue. This is seen as the resultant effects due to the fact that the economy of the US generates most of its revenue from the aerospace as well as the automobile industry hence hurting the economy to this magnitude would trickle down in effect to affect even more industries that may be dependent on Boeing (Jeri). Arguably, the global confidence could be seriously hit by the bad series of happenings of the company including, and not limited to, fuel leakages, faults in computers, and frequent fires. These, if not checked, would plunge the entire airline into misery for which revitalizing would require an abundance of resources to restore life and guarantee economic growth. The foregoing calls to task the change in response to opportunities vis-à-vis the challenges duly faced in commercial aviation. Moreover, the breakdown experienced in the lithium-ion batteries causing even fires in Japan has caused an imbalance in the industry necessitating safety inquiries exposing Boeing to high mounting costs.

It has not been easy for the management steered by Mr. McNerney to convince the investors and other stakeholders that the Company is executing all it can to restore normalcy although the battery problem seems a bigger hitch that may consume time to fix.  These cumulative upswings have fueled a lack of confidence amongst all concerned parties who are the vital pillars in the entire business translating to the poor financial health of the Company. Likewise, the Company must deal with the design and reliability of its fleet to accommodate more positive views thus nurturing the attitudes and general feelings of the public.

Failure to observe these aspects will give an edge to competitors like Qatar Airways who would deepen the crisis by tapping the Boeing market to grow even stronger. In retrospect, the looming challenges will cripple not only the giant airline but also slump the general economy characterized by layoffs and retrenchments thus swift mechanisms out to be put in place to salvage the current state of affairs to a fairer platform.