Connexion by Boeing: A case study of competition and new business model in aircraft manufacturing.

• Main Authors: Pei-San Lee, 李佩珊
• Other Authors: 劉恆逸
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/14849841800509967133

碩士 === 元智大學 === 管理研究所 === 94 === When corporations are looking for the best method for their globalization strategy, they want to discover and implement the business activity that would sustain their competitiveness on a long-term basis. The goal of my research is to examine the change of business activity of a monopoly corporation in an industry with a high entry barrier. Boeing Corporation, who has been identified as the giant in aircraft manufacturing, was the only manufacturer for all major commercial aircraft trading from the early 20th century until the powerful aircraft manufacturer Airbus was established in 1970. Because of the arrival of a strong competitor and their threat to Boeing’s monopoly, Boeing urgently needed to discover methods to gain back its losing market share as well as its leadership role in the industry. The purpose of this research is to examine how a monopoly company practices a new business model in order to face its competition and keep up-to-date with customer demand. A new business model can be an extension of a company’s core activity from its existing business division as well as integration between existing and innovational resources within the company. Once a core competence is identified, it is usually expected to be the tool used by a company to maintain its leading role in its industrial sector for a long period of time. The innovational business model is selected from Boeing Corporation’s new business unit – Connexion by Boeing, which is an in-flight high-speed Internet service product. The new business model is also the most interesting aspect as it has transformed Boeing Corporation’s role from a pure manufacturer to that of a service provider as well as to build a close business partnership (and relationship) with its customers. Last but not least, there are few further research options from this special case study as research limitations can be high in this “information-sensitive” business industry.