Business Case Studies & Business Publications

Boeing 747X

Werhane, Patricia ...

Case

Boeing 747X

Werhane, Patricia H.; Gorman, Michael E.; Cummings, Mary L.; Smith, Rob; Diersen, Sarah E.

E-0231 | Published September 9, 2002 | 6 pages Case

Collection: Darden School of Business

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In 1997, the Boeing Commercial Aircraft Group had to make a decision regarding the production of the 747X airplane, a project involving more than 1,000 employees. By continuing to develop new aircraft, Boeing would protect its innovative culture while maintaining a good relationship with its employees and global team--but this particular development was considered risky because it required an immense supply of resources. Boeing's biggest competitor was threatening to enter the market with a plane larger than Boeing's existing 747, meaning that Boeing would face competition in an area of the market where it had, up to that point, a virtual monopoly. Should Boeing merely continue production of the very successful 747, or should the company design a larger derivative?-the 747X?