Essays on Transforming of the Airline Industry Case Study

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The paper "Transforming of the Airline Industry" is a wonderful example of a Management Case Study. The Boeing 787 Dreamliner is geared towards managing new product development and supply chain which so as to stimulate revenue growth and market response. Nevertheless, management efforts and capital investment of Boeing 787 has improved steadily beside a series of delays in maiden flight and plane delivery to customers. Business nowadays has seen a rise in competition, in both national and international markets, something that has exerted pressure on companies to come up with ways of delivering value to consumers (Tang & Zimmerman, 2009).

In many industries, it has become clear that change is needed in order to cope with the global market competition. The case study evaluates the Boeing’ s rationale for the 787’ s unconventional supply chain by illustrating the experienced challenges of managing the supply chain and recommends key issues to be considered while designing new product development in supply chains. The key issues experienced (5marks) Since the inception of Boeing, many airlines have entered the market causing cut-throat price competition in the market.

As the prices continue to go down, passenger number continues to surge in the U. S. This forced the firm to focus on two basic competitive strategies to minimize the costs of existing types of aircraft or venture into new aircraft to increase revenue through value creation. The value-creation strategy entailed passengers was to perfect their travel know-how through redesigning of the aircraft and offering significant improvements in comfort. As a result, the Dreamliner permits airlines to avail of direct flights between cities without layovers, a move that is preferred by most international travelers (Tang & Zimmerman, 2009).

In relation to the market and airport’ s location of new development, weaknesses may comprise the operation of the firm is good, although not amazing in terms of its subsidiary's numbers as well as its entrance to development and trigger for new projects. Despite the fact that physical surrounding will be provided in the firm’ s development plan, the present features for certain locations of the downtowns space and lack of infrastructure and storage facilities for its clients is a problem. The second strategy entailed value-creation strategy for its key immediate customers and its clients which was meant to improve flight operational efficiency by the provision of big jets with varying sizes that flew the same speed.

Besides the capacity of 210-330 passengers and a range of up to 8500 nautical miles, the 787 Dreamliner is modeled to use 20 percent less fuel compared to nowadays airplanes. As such, the unique value that the 787 offers to the airlines and passengers exceeds their expectations (Tang & Zimmerman, 2009). The Dreamliner is the largest aerospace around the globe. The 787 airlines comprise of Virgin Atlantic, Continental, Kenya Airways, Emirates, Singapore, and Saudi Arabian Airlines, whereas the charter operators include MyTravel, First Choice Airways, Thomsonfly and Thomas Cook.

The airline has a great impact on both the local and global arena, as the management strives to be proactive, listening to as they work with locals and other industry partners and stakeholders to bring success in all sections of the society. Dreamliner acknowledges threat their future growth depends on the approach they take in handling the adverse effects of its operations.

The way the airline manage resources will be paramount to organizational success. As such, corporate responsibility and sustainable development will, therefore, remain to be a central consideration in decision making and business planning.

References

Burgess, J. and Macdonald, D. (2009), Developments in Enterprise Bargaining in Australia,

Tertiary Press, Croydon Victoria

Dabscheck, B. (1995), The Struggle for Australian Airline Industry, Oxford University Press,

Melbourne.

Easton, M. and Shaw, J. (2010), Transforming of Airline Industry, Lloyd Ross Forum, Labour

Council of NSW, Pluto Press, Leichardt NSW

Porters, M. (2004), Porter’s Generic Strategies. Auckland University Press,

Auckland, pp.159-172

Tang, C.S. and Zimmerman, J.D. (2009), Managing New Product Development and Supply Chain Risks: The Boeing 787 Case. UCLA Anderson School.

Waring, P. (2012). The Future of Bargaining Structures in Australian Airline Industry,

Work Futures Conference, Cardiff Business School 15th Annual Employment Research Conference Cardiff, Wales September 6-7th

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