Boeing their global strategy very unique and allows them

Boeing
has a very unique strategy, in whilst it is a global strategy; it involves many
partners across the world, allowing them access too many different markets. The
plans developed by a company to target growth on a global level for sales of
products or services. Boeing uses its innovative engineering as an advantage
and unique selling point, which with the help of many different manufacturers
from various countries, allows them represent a near-two generation jump in
technology. This is a significant competitive advantage, and precisely why it
makes their global strategy very unique and allows them to dominate the market.
By creating an innovative product, they gain a dominant position globally and
with the assistance of their connections and manufacturers worldwide, they gain
global trust and clients.

 

Additionally,
their production and concept creation process involves many engineers and
partners globally, which allows Boeing to acquire the most expert knowledge
possible and implement it through their virtual workspace, as demonstrated in
the Boeing Case Study.

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It
is clear also that Boeing follow a variation of a differentiation strategy. A
differentiation strategy is employed with the intention of creating a product
that is considered and valued unique by customers, and better than their
competition. Companies that succeed in implementing a differentiation strategy
have one or a combination of the following attributes: leading scientific
research, highly skilled and creative product-development personnel, a strong
sales force and a strong reputation for quality and innovation. (Smallbusiness.chron.com).
Boeing strategy can be related to numerous of those attributes, including,
creative product-development personnel, strong sales force and innovation. With
a constant desire to innovate, Boeing prioritizes staying ahead of their
competition but always offering the best possible product, with first-entry
into the market. Rather than seeking economies through scale as suggested by
Forbes, the Boeing-787 will deliver economy through technological innovation,
making the most of newly designed, fuel-efficient twin engines and lightweight
composite materials (Forbes.com, 2006). The above statement had been
used a differentiation attribute, in comparison to Airbus, as their main
competitor, which again highlights their unique use of technological innovation
as a part of their differentiation strategy to stand out from their
competition.

 

A
differentiation strategy has many advantages, as it allows companies to charge
a premium for its product or service, as they are offering a product/service
which is one of a kind and not technically available anywhere else on the
market. Additionally, a highly developed product in hand with a strong sales
force and corporate identity will allow the company to set a premium price.
Whilst it may be an effective strategy in the short-term, companies always have
to look ahead, and look out for competitors who will adopt those product
attributes to their own products. Additionally, a differentiation strategy
doesn’t appear overnight, it takes a lot of time to achieve a strong brand
image, tackle risk, bring investment on board; and whilst it may be tempting to
set a premium at the start, it is risky if the company will not have sufficient
customer demand to offset essential operational costs. Nevertheless, with a
good balance of innovation, price, customer loyalty, a differentiation strategy
will be invaluable for a global business, and this is where Boeing has been
strong and smart in establishing itself in the market.

 

Cost
leadership is another type of business strategy, which focuses on establishing
a method of achieving a competitive advantage. Essentially, it refers to
operating at the lowest cost within the industry. This strategy is usually
applied throughout the production process at every level, in order to remain
competitive. Cost leadership can also be referred to as a marketing strategy,
as it focuses on gaining customer’s through low and attractive prices. It does
not mean that the products are of a low standard, which is the trick of the trade;
but have to be of a similar quality for their specific target market, and
priced much lower against their competitors with the same product.

 

Cost
leadership is a common, yet risky strategy to undertake but if done correctly
it can create a multinational business, such as Walmart for example. According
to the Wall Street Journal article, ‘cost leaders tend to share some important
characteristics; the ability to charge low prices and still make a profit is
challenging. Cost leaders manage to do so by emphasizing efficiency’, (Zimmerman,
Ann and Kris Hudson, “Managing Wal-Mart: How US-store chief hopes to fix
Wal-Mart,” Wall Street Journal, April 17, 2006). Whilst, cost leadership
strategy can still enjoy high profits, subject to a high market share; it can
only be applied to certain companies in certain markets, which cannot become
profitable for a company like Boeing for example. For companies who follow a
cost leadership strategy, it is crucial to maintain consumer perceptions of
their products, as if it’s perceived as too low the business will suffer.
Additionally, to be profitable, as aforementioned, large volumes of sales are
required because of narrow margins. Which is not the only pressure on the
organization, as expenses are also meant to be kept low, in order to constantly
work on increasing that margin to achieve the right balance.

 

When
comparing the two strategies, it is clear that each are applicable to a certain
type of organisation and are more feasible to implement on certain types of
industries. Both strategies have a varied impact on performance of their
respective companies. Differentiation strategy helps the company establish
itself as a niche in the market, thus appealing to the consumer through a set
of unique attributes, allowing for a comfortable premium, acknowledging that
there is limited competition of the same standard in the market. Cost
leadership on the other hand, can only really be applied to wholesale retailers
who can utilise efficiencies of scale and offer attractive lower prices,
bringing in high volumes of consumers and sales, if establishing the right
balance of cost and quality. Both can be successful in their respective
industries and have a positive impact on a company’s performance.

 

In
conclusion, Boeing has worked hard on establishing itself in the market with a
unique strategy focused on its’ innovative research and development team,
helping the establishment of a global presence. Whilst there is strong
competition in the market, Boeing in still up keeping its attractive product
attributes, to maintain a strong position ahead of its competition on a varied
level. 

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