The supply chain management failure of Boeing787 - Research Paper Example

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As competition in the aviation markets continues to intensify, most of the companies present are trying to ensure that the development of most of their products changes considerably. Companies are now outsourcing some of the basic operations of their companies to focus on other…
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The supply chain management failure of Boeing787
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Download file to see previous pages The Boeing 787, a revolutionary aircraft, is a product of such operations as the Boeing Company decided to increase their value by creating the Dreamliner to counter some of the cost-reducing airline companies (Crown, 2008). However, the 787 Dreamliner has been marred with problems, and engineers believe that these problems emanate from their outsourcing operations. This paper will examine the failure of the supply chain of the 787 Dreamliner, and find out what was done to avert the complete collapse of the Dreamliner’s rise.
Increase in competition among the airline companies present has forced companies to look for alternative means to increase their revenue. The Boeing Company is no exception. Upon realization that it would be harder to maintain its top position in the aviation industry, the company chose between two strategies that would ensure its survival and growth in the market. Between reducing the cost and selling price of their aircraft and developing a new one in order to increase its revenue through value creation in the airline industry, Boeing chose to go with the latter. Through the Boeing 787 Dreamliner, the company would be in a position to give their customers a travel experience unlike any other. Its design was meant to ensure that long-haul flights were possible without the layovers that usually characterize such flights (Norris et al., 2005). This would have been perfect for their international customers.
Furthermore, operational efficiency would ensure that passengers would be provided with nonstop economical flights in between cities, which would ensure low costs, and an increase in customer demand. As the benefits of the Dreamliner became evident, the unexpected number of orders from the airline industry took the company by surprise. As a global aircraft manufacturer, Boeing did not want to disappoint. In late 2007, however, the company decided to announce delays in the development of the Dreamliner. The news was received ...Download file to see next pagesRead More
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