Sample Technology Paper on Boeing Corporation

Aerospace is a lucrative venture but only works best for companies that uphold
technology and competitive strategy. Boeing has proved its worth by adopting complicated
technology to achieve a competitive edge. The company's global presence across 140 nations
has helped the company penetrate the large market, making it easy to sell its products and
services in separate parts of the world. Boeing has continued to enjoy a strong relationship with
many companies that offer unique technology, which skyrockets its business. Another
significant strategy that assists the company in achieving a competitive advantage is its broad
product line. Boeing has continued to use a separate type of module revenue to generate more
profits. Boeing's most popular and lucrative model is the transaction-based model, which
involves directly selling its products and services to the final users. Businesses and individuals
have also found a way of earning commission through Boeing affiliate programs. The use of IT

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and IS has played a significant role as it acts as a model through which the company achieves a
competitive strategy and makes more sell in the world. The use of the cloud in Boeing has made
the operation easy and faster. Cloud applications used by Boeing offers a platform through
which customers can purchase products. The application also assists the company in monitoring
the flight paths used by planes. The use of artificial provides the company with algorithms that
have predictive capabilities. The outside always reflects the inside look of a product. The
external beauty of the Boeing plane is due to the advancement of 3D technology.


Boeing is a multinational American-based company that manufactures, designs, and sells
rotorcraft, airplanes, satellites, missiles, and telecommunication equipment. The company offers
product support and leasing services. Boeing is among the largest aerospace manufacturing
companies globally and the second-largest contractor in defense and military. The company was
born on 15 July 1916 in Seattle, Washington. The founder of the company was William Boeing,
a great businessman in America. In the year 1997, the company merged with McDonnell
Douglas to form the present Boeing. The present company constitutes five-segment: Boeing
Shared Service; Boeing Defense Space and Security (BDS); Boeing Commercial Airplane;
Boeing Capital and Boeing Engineering Group. The company's technological advancement has
made it possible to achieve a competitive advantage over its competitors. The company has
heavily invested in technologies that expose them to new opportunities. For instance, the
company has heavily invested in Digital Alloy, a company that makes unique 3D printing. The
financial growth of Boeing has continued to rise over the years. Adoption of a wise competitive

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strategy has put the company at the forefront in the race of dominating the aerospace industry.
As of early 2020, the financial growth declined after the flight ban due to Covid 19 pandemic.
The report will analyze the competitive strategy, The application of It and Is, and the financial
aspect of Boeing Corporation.

Competitive Strategy of Boeing

Boeing(BA) Company has adopted a competitive strategy that placed it at the forefront in
the aircraft industry. The company’s global presence has been a chief advantage. Boeing's
availabilities across 140 countries globally have made it possible for the company to penetrate
the large market, making it easy to sell its products and services in separate parts of the world.
While many competitors work hard to destroy each other, Boeing has adopted a strategy that
works differently from the old norm. Boeing enjoys a strong relationship with many companies,
including its competitors. For instance, Boeing partners with Northrop Grumman (NOC) and
Lockheed Martin (LMT) in a similar missile program. Another significant strategy that assists
the company to achieve a competitive advantage is its broad product line. More than 12000
jetliners built for commercial uses are in service around the world (Adamkasi). This is around 75
percent of the global fleet. Boeing works together with suppliers from separate countries to
create technologies and design concepts. The idea helps it gain market in these nations since the
company with shares is more likely to purchase Boeing products than from its competitors. For
instance, Boeing has maintained a strong relationship with Japanese suppliers, including
Kawasaki and Mitsubishi. BA works with companies like General Electric (GE) to develop one

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of the top holdings of SPDR S&P 500(SPY). Boeing also teams up with Roll-Royce to create
more efficient engines; this offers the company a technological advantage over other companies.
The Boeing Edge


Amount In B$

Fig 1.

Revenue model assessment

Boeing is both a product and service-based company. The company has continually used
proficient revenue models that create massive profits. While the internet has changed the way we
used to do things in the modern world, Boeing uses the traditional sale model to generate its
profit. The companies employ the manufacturer model, which entails creating a final product
from the raw material. Most of the materials used by Boeing are being fabricated within the
company. Boeing also has a program that allows the affiliate marketer to earn a commission on
the eligible transaction: flight, car rental, holiday, and hotel booking made on the Boeing

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website. The affiliate program used by Boeing has resulted in increased revenue generated by the
company. Transactional based models are the hugely used revenue model by Boeing. In this
case, revenue is generated by directly selling the product to either a person or a company.
Boeing has seen an avalanche of success selling its product and services using segments.
For instance, the Commercial Airplane (BCA) segments the market and produce commercial
jetliner and offers fleet support services. The company also uses a financing model as a way of
generating profits. Boeing Capital offers the customers financing to purchase and take delivery
of their order. The model, which many companies rarely use, has increased the company revenue
by 3%. The company has hugely used an advertisement-based revenue model for marketing its
product and services across the globe. The model is used by applications, websites, or market
place, which attracts more traffic. The advertisement targets both online and offline businesses.
The advantage of this model to being is that it allows the company to monetize the ads most of
the time. Lastly, we can talk of subscription, which one of the revenue models that generate
profits for Boeing Company. Companies like Microsoft, Google, and Apple have paid a certain
amount of money for their employee flights annually under this situation. It does not matter
whether the person will use a flight or not; the amount remains fixed(Johnstone).

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Comparing Separate revenue model in relation to profit Generation




Tradaional Sale model
Affiliate Model
Trasaction Based model
Financing model
Advertisement based model
Subscription model

Fig 2.

Current and upcoming IT an IS

Technologists from Boeing have adopted the use of artificial intelligence to drive more
efficiency in the equipment assembling. The advancement has been greatly used in the
Broetje_Automation Skin fastening production, which is highly specialized and engineered for
aerospace production. The machine learning and artificial intelligence team have created a
learning machine model which uses genetic algorithms and clustering to introduce predictive
abilities to the old fastener feed design of Broetje. Initially, the engineers manually turned off
and on the old fastener feed feature on their judgment and experience, but with little usage and
success. The use of technology has made the company acquire a competitive advantage over
other companies. Most of the companies rely on drills and fill in a time-consuming procedure to

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make them slower in the production process. The company’s savings have escalated as the
machine-learning techniques are continuously learning from the latest data, and the engineers
believe that the system can get even more accurate and faster. The technique is not only used in
the skin-fastening but also anywhere the predictive abilities can be applied. The technology is
capable of replicating and reusing in the Boeing production facility. Choosing the ideal artificial
intelligence algorithm is a balancing act grounded on the company goal, scalability, desired
accuracy, and prediction speed. Faster production of Boeing products line enabled the company
to utile its revenue model to meet the end-users.
Like many technologies, the cloud's true importance does not lie in the technology but in
the functional changes it enables. Boeing uses cloud technology to gain a competitive edge. The
company is using the public cloud and the on-premises virtualized workload to form a subtle
environment. The technology has made the applications work more efficiently, faster, and are
less expensive to maintain. The company has adopted a competitive strategy by creating an
application that tracks Boeing plane's entire flight path across the globe. The app has been used
by Boeing stuff to sell its craft; this shows how cloud speeds up operations. The app includes
both past and real-time data, which implies that there is a lot of analysis. The app also has some
revenue model channels, which aids in selling the aircraft. The customer can purchase Boeing
products and services with just a one-second click on the icon through the app (Butler,1). The
toolbox app permits engineers around the country to conduct research and verify repairs and
maintenance. The most innovative aspect of the technologies is to integrate the repair data from
other aircraft manufacturers. The process of getting a cloud application to work is very
challenging. The company had to perfect the technical deployment and the authorized,
regulatory, and security reassurance to make it work.

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After the supplier runs shortage, Boeing invests a lot of money in 3D-printing. The
company aims at supplying more airliners only if they have enough to supply. The 3D printer
has proven its significance by producing metal parts faster at a cheaper rate than traditional
methods. Boeing is making more investments with a dire need to get exposure and speed up
creating technologies they believe can ease their operations. Boeing achieved a competitive
advantage by being the only airliner to invest in Digital Alloy. The Designs make the plane
unique and admirable. 3D enables Boeing to meet the most demand requirement as one of the
leading manufacturing parts industry globally. Partnering with Digital Allow was one of the
smartest competitive strategy adopted by the company(Aston,1).
Financial Analysis of Boeing

Conducting a financial analysis on Boeing company is a permitted business practice as
they speak about certain financial and budget activities to determine its financial performance's
efficiency and effectiveness.
Financial position ratio( ROA and ROE)
Analyzing Return On Assets (ROA)

Annual Data 2019-12-31 2018-12-31 2017-12-31 2016-12-31 2015-12-31 2014-12-31
on Assets

-0.476 9.0 7.5 5.4 5.5 5.9

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From the year 2014 to 2019, the return on assets has fluctuated with a very minimal
difference across the year. The ROA as 2014 was 5.9, which was slightly higher than the
following year, 2015, which recorded a ROA of 5.5. 2018 was the year in which many
shareholders enjoyed their investments. That year recorded a ROA of 9.0. The year 2019 was
greatly affected resulting to a downward growth in ROA, recording -0.49. ROE always offer the
investor with an insight on how the company is managing the money the shareholders has
invested on it. From the above graph we can conclude that investors have been frustrated by
the 2019 result and that’s why the board fired David Muilenburg as the CEO and employed
David Calhoun.

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Analyzing Return on Equity (ROE)
Annual Data 2019-12-31 2018-12-31 2017-12-31 2016-12-31 2015-12-31 2014-12-31
ROE 7 255 493 574 80 61



The record of REO has increased exponentially from the year 2014 to 2016, with is a ROA of 61,
80, 574 respectively. The year 2017 recorded a ROA of 493 which was less as compared to year
2016. The curve continues to go down with year 2018 recording a ROA of 255 and year 2019
had the lowest ROA of 7. The higher the ROA the better, since the companies earning are
accrued from little investment.

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Gross Profit
Annual Data 2019-12-31 2018-12-31 2017-12-31 2016-12-31 2015-12-31 2014-12-31
Gross Profit(in
million $)

$4528 $19706 $17463 $14529 $14090 $14079


Gross profit in
Million $

The company's Gross profit has continued to increase from the year 2014 with a record of
$14079. The following year recorded a gross profit of $14090 million which was an increase as
compared to previous year. 2016 gross profit also raised and its record was $14529. The year
2017’s gross profit increased with a big gap with its record standing at $17463$.2018 recorded a
gross profit of $19706 which is the highest amidst all the years of we have analysed . In the

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year 2019, the gross profit dropped slightly as compared to 2018 by recording a gross profit of
$4528. By conducting a financial analysis, Boeing can determine its financial stability since
companies show goes through an upward and downward financial growth. The gross profit is
significant in that it assess the company efficiency by utilizing its labor and supply to produce
services or goods.


After the Covid 19 Pandemic, many Aerospace companies' financial growth has declined
significantly. As a result, the majority have concentrated on the space race. While the company
has shown its willingness to work together with other companies and its competitor, Boeing has
zero intentions to work with Space X, a startup. The race to win the NASA project of
transporting astronauts to space has shown Boeing's technology deficit. It was obvious that
Boeing would win the NASA contract after proving its competence over 100 years.
Surprisingly, Space X, a startup, won the contract after the Boeing space test was crushed. If
Boeing team up with space X, it will manage to fill the technological gap. Boeing's most
lucrative product is 737 Max. Unfortunately, the product has experienced critics after the crash
that took place in Ethiopia. The plane crash was contributed by the flight control failure, which
uses artificial intelligence to control many parts of the plane. The ideal recommendation is to
invest in technology to make plane travel safer. Otherwise, the company will drag backward as
upcoming companies like Space X overtake it.

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Works Cited

Adamkasi. "Competitive Advantage Analysis of Boeing." Competitive Advantage Analysis,
27 Dec. 2017,
of-boeing/. Accessed 20 Nov. 2020.
Aston, Richard. "3D Printing Done Right." Boeing, 2018, p. 1. Accessed 20 Nov. 2020.
"Boeing Financial Statements 2005-2020 | BA." Macrotrends | The Long Term Perspective on
Markets, TrackStar, 2020,
Butler, Brandon. "How Boeing is Using the Cloud." Network World, 2014, Accessed
20 Nov. 2020.
Johnstone, Mathew. "How Boeing Makes Money: Commercial Airplanes Unit Generates Most
Revenue." Investopedia, 8 Nov. 2020,
Accessed 20 Nov. 2020.
Solan, Hilary. "Artificial intelligence, machine learning advances hit factory floor." Boeing,
20 Nov. 2019, p. 1. Accessed 20 Nov. 2020.