Marketing Plan for Boeing Commercial Airplanes - Essay Example

Most commercial airlines are now plying international routes with the rapid deregulation of the global airline industry. At the moment, it can be seen that the economic outlook of the US is dim with the FED Chairman announcing that the nation will be experiencing a recession due to the extended problems of trade and budget deficit coupled with the overvalued currency (Bernanke Warns of Possible US Recession 2008).
Noting the capital-intensive nature of aircraft production and airline operation, technical expertise together with the ability to accurately price long-term contracts become the key primary concerns. This makes large business organizations capitalize on economies of scale in design, manufacturing, and purchasing. On the other hand, smaller companies concentrate on the manufacture of smaller parts and focus on small market niches. To differentiate themselves from the rapidly proliferating no-frills airlines, they are capitalizing on adding value-added services to attract and retain customers (Hoovers Database 2008).
The main competitors of Boeing Commercial Airplanes include Airbus SAS, Bombardier Inc, and Embraer SA.
• Airbus SAS
Airbus is a European aircraft manufacturer headquartered in Toulouse, France, and has long been recognized as Boeing’s toughest rival. The company is established in 1970 and currently employs 57,000 people in four European Union countries. Even though Boeing has long dominated the global airline industry in the manufacture of crafts, Airbus won greater shares of aircraft in 2003 and 2004 and delivers more aircraft from 2003 to 2007. Airbus has always been in tight competition with Boeing but competition is moderated in its move to design aircrafts smaller or larger to create a competitive edge (Hoovers Database 2008).
• Bombardier Aerospace
Bombardier Aerospace ranks third in aircraft manufacture in terms of manpower and fourth in terms of the number of aircraft delivered. The business organization is recognized as a prime player in business jets, short-range airliners, fire-fighting amphibious aircraft, and defense-related services. It specializes in the production of commercial aircraft with advanced noise and vibration suppression (Hoovers Database 2008).


• Embraer SA
Embraer is a Brazilian aerospace conglomerate that is engaged in the production of commercial, military, and corporate airlines. The business organization lags behind Boeing and Airbus to become the third-largest producer of aircraft on a global level. Recognizing the global opportunity and the rapid integration of economies, it has set up maintenance and commercial sites in the US, France, Singapore, and China. In 2007, it communicated its plans of creating twin-engine, jet-powered military transport (Hoovers Database 2008).