In Juan Alvarez’s first and second article, he believed that “Boeing’s recent story has become a fine example of poor positioning strategy.” I agree with his opinion because they tried too desperately to differentiate themselves from other airlines with something that was irrelevant with the needs of present airlines. Boeing tried to stand out from others by coming up with a futuristic aircraft design for its customers that looked very luxurious and appealing. However, the opportunity cost of holding on to the 787 Dreamliner became so great that JAL (Japan Airlines) and other companies eventually switched to the competition, Airbus’s new A350. Boeing’s idea of having a luxurious cabin and aircraft with the newest modern technology is really impractical as the cost is too great, therefore the plane ticket will be too expensive for the airline to generate much revenue as customers won’t be willing to pay so much for a mere flight across the globe. They should focus on how to strengthen their value proposition through what’s practical and with reasonable costs.
Sources:
http://www.forbes.com/sites/jonathansalembaskin/2013/10/11/boeing-marketing-reorg-illustrates-hazards-of-innovation/
http://www.economist.com/blogs/schumpeter/2013/10/airbus-wins-big-order
http://www.digitaltrends.com/wp-content/uploads/2009/12/787-dreamliner-3.jpg