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Boeing's shift towards a global systems integrator strategy, outsourcing over 70% of production to partners, risks sharing proprietary knowledge and expertise traditionally held in a manual titled "How to Build a Commercial Airplane." Strategic partners, like the Japanese, now have the capability to design and manufacture critical components such as the advanced wings of the 787, potentially paving the way for future competition. China, a significant partner in the 787 program, aims to develop its civil aerospace industry, raising concerns about emerging competitors entering the market. Boeing executives are wary of historical precedents where new entrants disrupt established markets with innovative approaches, leading to market leadership shifts. The preparedness of Boeing's leadership to navigate potential challenges from emerging competitors remains uncertain amidst these shifting dynamics.
Boeing's shift towards a global systems integrator strategy, outsourcing over 70% of production to partners, risks sharing proprietary knowledge and expertise traditionally held in a manual titled "How to Build a Commercial Airplane." Strategic partners, like the Japanese, now have the capability to design and manufacture critical components such as the advanced wings of the 787, potentially paving the way for future competition. China, a significant partner in the 787 program, aims to develop its civil aerospace industry, raising concerns about emerging competitors entering the market. Boeing executives are wary of historical precedents where new entrants disrupt established markets with innovative approaches, leading to market leadership shifts. The preparedness of Boeing's leadership to navigate potential challenges from emerging competitors remains uncertain amidst these shifting dynamics.
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