Boeing SWOT Analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

Boeing
The Boeing Company (Boeing) is engaged in the design, development, manufacturing, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The company generates significant revenues from integrated defense systems and commercial airlines segments. The diversified revenue stream reduces the business risks associated with the company and hedges it against demand fluctuations in any one particular segment. However, the increasing raw material prices would put pressure on the profit margins of the company.

Page 1 of 2

Boeing SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths Diversified business offerings Strong focus on R&D Strong financial performance

Weaknesses Declining performance of integrated defense systems division Relatively low employee productivity Weak turnover ratios

External

Opportunities Growing demand for commercial airplanes Strong order backlog Rising defense spending in the US

Threats Increasing prices of titanium and aluminum Intense competition Heavy dependence on US government contracts Government regulations

Page 2 of 2