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Connexion By Boeing: Connexion By Boeing: Information technology for Information technology for

Competitive AdvantageCompetitive Advantage

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BackgroundBackground

• Tremendous downturn in Worldwide travel

• On April 27, 2000, Boeing announced to offer high-speed connectivity to aircrafts under a new brand, Connexion by Boeing

• The events of Sept. 11, 2001 and SARS crisis.

• Made its debut aboard Lufthansa Flight 452 on May 17, 2004.

• Developed mobile based, global broadband communication network.

• Goal: High speed communications in the sky similar to that on land. For More Info Visit:

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Market Analysis By BoeingMarket Analysis By Boeing

• 75% of the business travelers carried laptops on flights

• 62% of US frequent business travelers were interested in in-flight broadband services

• About one fifth of the different airlines’ frequent fliers were willing to pay as much as $35 per flight for a high-speed service offering

• 3% of the frequent fliers would be extremely likely to switch carriers for broadband internet access

• 6% would even abandon frequent flier programs in ordWer to obtain connectivity


SOWT Analysis+ case SOWT Analysis+ case study Writing solutionstudy Writing solution

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• Connexion by Boeing can offer Connexion by Boeing can offer other benefits other benefits::

• Increased productivity for airlinesIncreased productivity for airlines

• Airplane maintenanceAirplane maintenance

• Operational efficiency opportunities Operational efficiency opportunities for the airlinesfor the airlines

• Medical diversionsMedical diversions

• • Enhanced serviceEnhanced service

• • Greater securityGreater security

• • Competitive differentiatorCompetitive differentiator


Analysis of the e-Enabled Analysis of the e-Enabled AdvantageAdvantage

• Will serve as a sustainable advantage– Strategic positioning– Innovation ability

• Provides stakeholders with resources to reduce costs– By increasing operational efficiencies, Boeing can

develop a virtuous cycle


Sustainable Competitive Sustainable Competitive AdvantageAdvantage

• Provides information-enabled products and services– Information is easily customized

• Drives asset efficiency, cost savings, and revenue growth

• Unpredictable lifespan – As long as Boeing maintains innovation

capabilities and leads technology growth


IT Utilization IT Utilization

• IT will serve as the main driver of Boeing’s sustainable advantage– Employ highly competent IT leaders– Institute a lean, yet agile infrastructure

• Embed IT into existing products/newly launched services– Will drive revenue growth– Creates high switching costs


RecommendationsRecommendations

1. Boeing must implement the consultative selling approach and provide services that move toward a partnership relationship with customers. This involves altering the business plan to fit the demands of the environment.

2. Boeing needs to emphasize the importance of communicating the value of e-Enabling to their customers.

3. Boeing must utilize large scale system integration to equip all products with the IT capabilities associated with e-Enabling.


CONCLUSIONCONCLUSION Connexion has redefined the airline industry by

improvising IT efficiency. Connexion benefits the passengers, flight and cabin

crews, airline operations, system performance and the industry.

“It’s going to happen, and the mindset is, if Boeing doesn’t do it first, someone else will.”

“Right now, it’s sort of like a very pre-emptive chess game. The e-Enabled environment is going to happen, and the question is, are we going to be following or leading?”


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Date post:	20-Jan-2015
Category:	Marketing
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