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Abstract: This mini project focuses on conducting a competitive intelligence analysis of Boeing in the US defense and aerospace markets. By evaluating Boeing's position vis-à-vis its competitors, market trends, and strategic initiatives, this study aims to provide valuable insights into Boeing's competitive landscape in these industries. The analysis will assess factors such as market share, product portfolio, technological advancements, and customer perception to gain a comprehensive understanding of Boeing's strengths, weaknesses, opportunities, and threats in the dynamic defense and aerospace sectors.
Competitive Intelligence of Boeing in US Defence and Aerospace Markets
2306202301- BI & CS
Ravi Shankar NRK
Learner, Business Intelligence & Competitive Analysis
Peer Graded Assignment
Enterprise name: The Boeing Company
Headquarter Country: United States
Reporting year: 2021 THE BOEING COMPANY
Classifications:
Sector: Industrials # Competition Positioning: where did Boeing stood in 2021.
Industry Group: Capital Goods # Enterprise Ranking
Industry: Aerospace & Defense # KPI Examination
Sub-Industry: Aerospace & Defense
Competition Positioning: where did The Boeing Company stood in Competitive Aerospace & Defence Market landscape in US in 2021
The Boeing Company maintains a strong position in the US aerospace and defense markets. However, ongoing efforts are required to overcome recent setbacks, address competition from both domestic and international players, and maintain a competitive edge.
The analysis is undertaken based on Enterprise Comparison with competitors in respect of Size, Profitability, Financial Health and Key Indicators.
Competition Positioning: where did The Boeing Company stand in the competitive landscape in US Aerospace & Defence Markets in 2021?
Based on the key indicators provided for US Aerospace and Defense companies in 2021, here is an analysis of The Boeing Company's competitive positioning:
1. Net Margin: With a net margin of -0.07, Boeing has the lowest net margin among its competitors. This indicates that Boeing is not as profitable as its competitors in generating income from its operations.
2. Gross Margin: Boeing has the lowest gross margin (0.05) among its competitors, which could imply that it has a less efficient production process compared to others.
3. Return on Assets (ROA): With a negative ROA (-0.03), Boeing's assets are not generating income as efficiently as its competitors, making it the least efficient company in the group.
4. Total Revenue Growth Rate: Although Boeing doesn't have the highest growth rate (0.07), it indicates that the company is growing at a moderate pace compared to General Dynamics (0.01) and Northrop Grumman (-0.03).
5. Inventory Turnover: Boeing has an extremely low inventory turnover ratio (0.75), which could imply that the company has difficulties in managing its inventory levels or selling its products in comparison to its competitors.
6. Payable Days / Receivable Days: Boeing has the highest ratio of payable days to receivable days (1.57), suggesting they take longer to pay their suppliers than to collect payments from customers, which might negatively impact the company's cash flow management.
7. Return on Equity (ROE): Boeing's ROE is not available (N/A) for comparison with the other companies. It could be mainly due to negative earnings in recent periods.
8. Current Ratio: Boeing's current ratio (1.33) is near the industry average and implies that the company has enough liquid assets to cover its short-term liabilities.
9. 1 / Liability Asset Ratio: Boeing has the lowest ratio (0.9) among its competitors, indicating that it carries more debt relative to its assets compared to the other companies.
In conclusion, Boeing's competitive position within the US Aerospace and Defense market appears to be weaker compared to its competitors, as it has a negative net margin, lower efficiency in production and inventory management, and a higher debt ratio. However, it has a moderate revenue growth rate and a current ratio close to the industry average. Overall, Boeing may need to focus on improving its margins, inventory turnover, and debt management to strengthen its competitive position.
Enterprise Ranking
The Enterprise Ranking of competitors is done based on following comparison
Total Revenue
Operating Income or Loss,
Gross Profit,
Return on Assets
KPI Examination
The KPI examination of two competitors is done for comparison with the Boeing Company:-
Lockheed Martin Corporation
Raytheon Technologies Corporation
Analysis : The Boeing Company's performance is mixed when compared to its peers. It shows lower profitability in terms of margins and returns on assets and invested capital. The financial health, as indicated by the current ratio, is similar to its peers, but the liability asset ratio is higher. In terms of growth, The Boeing Company has moderate total revenue growth, and data for operating income growth and free cash flow growth is not available. In operational efficiency, The Boeing Company has higher inventory days and cash conversion cycle compared to its peers. These factors indicate that The Boeing Company faces challenges in profitability and operational efficiency when compared to its competitors in the aerospace and defense industry
Observations and Insights of The Boeing Company:
· Leading market presence: Boeing is one of the top two largest aerospace and defense manufacturers in the US, alongside Lockheed Martin Corporation, dominating both the commercial aircraft market and defense sector.
· Diverse product divisions: Boeing has key product divisions including commercial airplanes, defense, space and security systems, and global services, enabling them to cater to a wide range of market segments.
· Strong partnerships: Boeing's alliances with powerful partners such as the Pentagon, NASA, and other government institutions provide a competitive edge in meeting defense and aerospace demands.
· Extensive product portfolio: Boeing manufactures a broad range of aircraft and defense systems, including the 787 Dreamliner, 737 MAX, F-18 Super Hornet, and KC-46 refueling tanker, allowing them to target various market segments effectively.
· Focus on R&D and technology: Boeing's emphasis on research and development, along with advancements in composite materials, fuel-efficient designs, and investments in next-generation aircraft, space, and cybersecurity technologies, keeps them at the forefront of the industry.
· Global market expansion: Boeing's strategic approach to expanding into international markets, particularly in Asia, the Middle East, and Europe, reinforces their strong competitive positioning.
· Competition and challenges: Airbus poses a formidable challenge in the commercial aircraft market, while defense contractors like Lockheed Martin, Northrop Grumman, and Raytheon Technologies compete with Boeing for defense contracts.
· Recent setbacks: The 737 MAX crisis and the impact of the global pandemic on air travel have significantly affected Boeing's reputation, sales, and profitability, potentially influencing its competitive position in the short term.
· Defense contract competition: Boeing faces competition from Lockheed Martin's F-35 and F-22 aircraft, as well as Northrop Grumman's B-21 Stealth Bomber, in securing valuable defense contracts.
