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ID number:288303
Evaluation:
Published: 12.10.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Boeing has long talked about expanding into the services area...." Does it make sense? This is the question that we will try to answer in this paper by analyzing the market conditions, the customer needs, and Boeing's core capabilities.
Within the commercial aircraft industry, Boeing's focus for value-added service relates primarily to the transport airplane segment, which is expected to grow in the following years.
The most important driver for the commercial aircraft market is the trend in airline passenger traffic, which is mainly influenced by:
-Economic growth
-Political stability
-Other factors such as, industry profitability, environmental constraints, technology, price, among others
Boeing projects the total commercial aircraft market over the next 20 years at more than $1,000 billion, based on global economic growth projections, increased utilization levels of worldwide aircraft, and requirements to replace older aircraft.

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