Management Strategy ( Boeing Corporation) Reseach Case - Essay Example

Unfortunately, its test run which was scheduled in this year had to be postponed indefinitely due the supply chain inefficiencies prevalent in the organization. Before the test drive itself, it has 903 orders in hand. (Maynard. M. 2008). On the Military defense front, the company was stripped off many crucial contracts owing to the unethical behavior of the employed staff and is expected to regain its right to bid for future contracts from 2010 onwards. (Wayne. L. 2008). In the cargo flight provider section, the 747 and 777 are the largest available products and the company can bank on this specialty that it can implement the Product Proliferation strategy wherein the customers have a greater cargo space availability facility and as such would be interested in paying the extra price in comparison to the smaller cargo flights.

In the commercial vehicle sector, the market leader status which remained till 1993 was lost against Airbus in that year due to the technological advancement of the Airbus’s A-380. (Kotler, Keller, 2006). Added to this, the current economic slowdown is taking its toll on the aviation sector. Hence, great importance has to be given to the pricing of its existing products and especially the new launch – the 787. 787 comes under the prestige product segment but care has to be taken that the company follows the value based pricing strategy as depicted by the organization in the case of its earlier launches so that its customers have to be rest assured of better value for lower price in comparison to its rival’s product.

As it is, 787 have an advantage of fuel efficiency which can be taken into consideration while pricing. However, care should be taken that, in the run to gain the market share, it should not quote any bottom level prices that it may have to face supply chain difficulties as the product is technically highly