Boeing's Core Competencies

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A Core Competency is a special skill or technology that creates unique customer value. According to strategic management literature, core competency should provide significant and appreciable value to customers relative to competitor offerings and be difficult for competitors to imitate or procure in the market, thereby creating competitive barriers to entry.

Boeing has been known for its diversified culture of business, and therefore, multiple competencies that make this company exceptional. However, based on our own analysis of this business establishment we would like to concentrate on select few competencies that have a potential to gain distinctiveness in short future.

Boeing itself identifies three main core competencies detailed customer knowledge and focus, large-scale systems integration, and lean enterprise. Detailed customer knowledge and focus

Boeing commits to understand, anticipate and be responsive to customers needs. Phil Condit, companys Chairman and CEO, introduced a concept of Market shaping. According to Condit, Market shaping is about understanding where your customer is going; employing Boeing creativity, resources and technological expertise to cooperatively help them there; and having the right products and services waiting when they get there. Market shaping does not mean telling your customer what they should do or what they should buy. Rather, think of market shaping as getting out ahead of the customer and paving the streets to allow them to easily reach that future state.

Large-scale systems integration

Boeing will continuously develop, advance and protect the technical excellence that allows integrating effectively the systems designed and produced. This core competency can also be known as Boeings R&D core competency. An example of one of the R&D innovation is a new shared design environment, where true design collaboration occurs. Design suppliers and partners will use the same set of design data (based on authorized access), in a persistent, context-rich environment that includes requirements, functional design, analysis, spatial design, supportability design, and a level of the manufacturing plan. As an example of the global design challenge, Boeing has already publicly announced technology development partners for the Sonic Cruiser concept airplane.

Lean enterprise Boeings entire enterprise will be a Lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.

Strategic partnership with NASA and United States Air Force

This strategic partnership allowed Boeing to become the worlds largest space and communications company. Boeing Space and Communications (S&C) is home to such programs as the space shuttle and the International Space Station. This partnership allowed for having a Delta IV program. The Delta IV program has been designed to produce, process and launch rockets with increased safety, efficiency, reliability and affordability.

Space and Defense Financial Services

Boeing Capital Corporation has expanded its financial services to support space and defense projects and programs. Boeing believes the relatively new market for the commercial financing of space and defense projects is evolving and Boeing Capital Corporation is aggressively exploring the opportunities in these areas. As part of the worlds largest aerospace company, the customers will benefit from Boeings expertise, structuring skills and experience. Specialized projects and programs may include military-related products, International defense financing, PFI/PPP, Project financing, Launch vehicles, Satellites and related space systems.

Bibliography

1. COE Newsnet - September 00, issue 6 "Design Integration Across a Global Enterprise" by Jim D. Green

. Boeing Frontiers, "Helping shape markets of tomorrow", November 00, volume 1, issue 7

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