Filed under: Boeing Co (BA), Southwest Airlines (LUV)
Bloomberg News reports that Boeing Co. (NYSE: BA) set another sales record in 2007. While it’s not yet clear whether Boeing sold more than its competitor, Airbus, the 1,413 commercial jets Boeing sold last year highlight the power of effective competitive strategy.
I’m in the middle of writing a book about Boeing and have found it fascinating to examine the competition between Boeing and Airbus. In the 1990s, Airbus decided that it could beat Boeing by building the biggest jumbo aircraft on the market. By contrast, Boeing — which was then under pressure from Airbus — listened to the airlines and heard them say that they were facing competitive pressure from low-cost, point-to-point airlines like Southwest Airlines Co. (NYSE: LUV) — whose strategy I analyzed in Value Leadership — and needed mid-range aircraft that were more fuel efficient.
Continue reading Boeing’s 2007 orders set new record as Airbus struggles
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