The United States aviation giant, Boeing, landed at the center of a storm that ended in the grounding of the newest airplane model, the 737 MAX, across the globe. This has created the image of the leading manufacturer spoiling the latest airplane design and, consequently, leading to the death of over 300 passengers after two fatal incidences in only five months, which appear to have happened under similar conditions. The initial 737 models had become the best-selling airplane around the world and was a true cash-cow for Boeing (Johnston and Harris 4-6). In light of the 737 MAX problems, the company should replace the model with an entirely new one designed from scratch.
Financial strategies that Boeing should implement given the 737 MAX problems require a complete overhaul. The 737 MAX drawbacks present an unexpected risk for the fall of a corporation such as Boeing but it should implement solid plans to ensure continued success (Desai et al. 5). Boeing should design a completely different and superb airliner to rise above the 737 MAX problems and ensure continued success. Since Airbus was edging past Boeing’s success, the company should hire top-notch designers for its new aircraft to avoid a recurrence of the 737 MAX problems. The establishment of a new aircraft means that Boeing should leave the past behind, regardless of the expensive infrastructure and technology incurred for 737 MAX, bear the heavy loss, and prepare for an all-new design and expense. Although tantamount to abandoning its golden goose, 737, that catapulted the company financially, embarking on a novel model will ensure that Boeing bounces back quickly since it will be an effective, though costly, crisis management approach.
Boeing should advertise its professionalism and airplanes around the world, as a way of restoring confidence in different players within the aviation sector. With the present loss and perhaps inability to fund a fresh 20 billion dollars’ development, Boeing risks surrendering its dominant market share to Airbus. Extensive advertisements through online platforms, the press, and the media around the world will help the company rise from the severe monetary and reputational damage. This will avoid significant negative effects on the economy of the United States since Boeing’s airplanes and parts account for about 5% of American exports (Torija et al. 196). Before the 737 MAX problems, revenues projected by Boeing stood at three trillion dollars in the next two decades, which translates to 55% of its airplane market.
To overcome the 737 problems, share costs, and rise above reputational challenges, Boeing should engage in partnership with other leading companies such as Airbus. Such a marketing partnership should push an effective campaign through the assurance of the safety of airplanes. Collaborating with another successful company will assist Boeing to deliver better results and prevent its collapse (Shvindina 62). Moreover, the marketing partnership will be cheaper, bring success faster, and expose new models to a wide audience. Eventually, the strategic alliance will result in remarkable potential gains for both companies. The public is amazingly forgiving when a company in such problems as Boeing addresses them effectively and convincingly.
Boeing is in problems and should employ effective fiscal strategies such as the creation of a new model, international advertisements, and partnerships to deal with the 737 MAX crises. An effective approach necessitates a complete overhaul. The company should guarantee safety as a means of bringing back confidence in different stakeholders within the aviation industry. Designing a superb airliner requires hiring first-rate professionals to prevent a repeat of the 737 MAX mistakes.
Works Cited
Desai, Abdullah A., et al. “Value-Driven Design Framework for Competitive Aviation Markets.” Journal of Aircraft, vol. 1, 2019, pp. 1-10.
Johnston, Phillip, and Rozi Harris. “The Boeing 737 MAX Saga: Lessons for Software Organizations.” Software Quality Professional, vol. 21, no. 3, 2019, pp. 4-12.
Shvindina, Hanna. “Coopetition as an Emerging Trend in Research: Perspectives for Safety & Security.” Safety, vol. 5, no. 3, 2019, pp. 61-65.
Torija, Antonio J., et al. “On the Assessment of Subjective Response to Tonal Content of Contemporary Aircraft Noise.” Applied Acoustics, vol. 146, 2019, pp. 190-203.