Japan Airlines Deal With Airbus Is Blow In Boeing Stronghold

 

Stung by all the problems with its new 787 Dreamliner over the past decade, Boeing waited too long to start updating its larger 777 jets, giving Airbus an opening to break into the Japanese market that Boeing had dominated for decades, aviation analysts said Monday. (NY Times)

Problems Boeing is now facing:

– 777X lost its differentiation advantage
– European companies announced a big order from Japan Airlines for A350 wide-body jets
– Two longtime Boeing customers order Airbus planes
– Relationships with an investing country is threatened

Boeing 777x is expected to replace Boring 777, featuring fuel-saving structure and larger capacity, and Boeing is supposed to dominate in the sales of midsize and larger jetliners. However, “this may not be playing out as planned.”

We assume that Boeing mainly focuses on differentiation strategy, and Boeing obviously has already had skilled scientific research as well as product development. Boeing’s failure this time indicates the weakness in Boeing’s marketing plans and a lack of forecasting. Even though comprehensive consideration is needed before launching a new product, too much waiting-time could result in imitation by competitors, losses of differentiation advantage and the best time of introducing it to market.

Boeing could have won.

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Source:
http://www.nytimes.com/2013/10/08/business/international/jal-orders-9-5-billion-worth-of-airbus-jets.html?ref=business

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