Boeing 787…Are the winds shifting?

Is this more concerning news coming out of Boeing regarding the 787 program or standard hiccups in the development process of a complex and innovative product — only time will tell. While this issue is peanuts relative to analyst reports that some of the 787 suppliers are struggling to meet Boeing specs and timelines. While I am sure that a delay (even a relatively short one of a few months) will not bode well for the Boeing stock I can’t imagine that this will drastically change the Boeing vs. Airbus competitive dynamics as Airbus is a good 2-3 yrs. behind Airbus and has significant resources tied up in the A380 for the forseeable future.

In my humble opinion business schools should start preparing a case study on the turn-around of Boeing which is based on a few key elements—here are a few:

  1. leapfrog technology aka the 787
  2. insight that point to point is more important then network
  3. new supplier model: extension of risk to large suppliers

What do you all think?

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