Term Paper on "Premium Aerotec How Can Premium Aerotec Gmbh"

Term Paper 60 pages (19753 words) Sources: 60

[EXCERPT] . . . .

Premium AEROTEC

How Can Premium AEROTEC GmbH win BOEING as a major customer?

Why Premium AEROTEC wishes to attract Boeing as a major customer

Importance of winning Boeing as a major customer

Oligopolistic situation in aircraft manufacturing market

B2B relationship in general + High Tec B2B marketing / relations

Strategic Situation Analysis

INTERNAL Analysis: Premium AEROTEC and Competitors

Premium AEROTEC -- Strengths.

Premium AEROTEC -- Weaknesses

Spirit AeroSystems, Inc. -- Strengths

Spirit AeroSystems Inc. -- Weaknesses

Vought Aircraft Industries - Strengths

Vought Aircraft Industries -- Weaknesses

B.F. Goodrich -- Strengths

Goodrich -- Strengths

EXTERNAL ANALYSIS: Opportunities / Threats

Premium AEROTEC -- Opportunities

Premium AEROTEC -- Threats

Summary

Market Analysis

Sourcing Strategy of BOEING

Analysis of Boeing's Buying Center

Purchasing criteria of Boeing

Boeing Supplier Management, Purchasing process

38

2.2.5 Where & how shall Premium Aerotec enter the market?

39

2.2.6 What shall Premium AEROTEC do to be attractive?

41

2.2.7 PEST Analysis

43

2.2.7.1 Political

44

2.2.7.2 Economic Factors

45

2.2.7.3 Social

46

2.2.7.4 Technological

46

2.2.8 Kotler's 4-P Model

47

2.2.9 Ways to enter the American market for Premium Aerotec

48

2.2.10 Deciding on the marketing organization

50

2.2.11. Export Departments

51

2.2.12 Other models to be considered

52

55

3.1 Potential Customers

56

3.2 Consumer Analysis of Boeing

61

3.3 Premium AEROTEC Core Competencies

63

3.4 Final Analysis of Market Entry Strategy

67

3.5 Market Entry Strategy and Offers

66

3.6 Closing Thoughts

68

Works Cited

70

How Can Premium AEROTEC GmbH win BOEING as a major customer?

1.0 Introduction

Outsourcing is becoming increasingly prominent in many manufacturing sectors. The aerospace sector is no different. For example, Airbus has been actively outsourcing 6 of its former 16 manufacturing plants since January of 2009. These changes resulted in the formation of a new company, German Premium AEROTEC GmbH

. This opens up many new opportunities for suppliers on all TIER levels of the aerospace manufacturing process. Premium AEROTEC is a TIER I supplier of structural fuselage, and cockpits. The trend towards outsourcing opens many opportunities for the company to become a supplier for major manufacturers in the aerospace industry. Boeing is one of the most sought after contracts for suppliers. The following will explore how Premium AEROTEC can leverage its strengths and negate its weaknesses in its desire to become a part of Boeing's value chain.

1.1 Why Premium AEROTEC wishes to attract Boeing as a major customer

Boeing is the world's largest aerospace company and the largest manufacturer of both commercial and military aircraft

. Boeing has a diversified product line including rotocraft, satellites, of the electronic defense systems, missiles, launch vehicles, and advanced information and communication systems. Boeing is also a major service provider to NASA. Boeing operates the space shuttle and the International Space Station. This impressive list of products and lines provides many opportunities for smaller subcontractors to enter into the aerospace supply field in the U.S.

Aside from this, Boeing has a diverse customer base with customers in over 90 different countries around the world. In the U.S., Boeing is one the largest exporters in terms of sales among all major corporations

. This diversified customer base provides long-term stability and reduces the risk of losing a major part of their business at once. Stability in attracting a major customer, such as Boeing, also means stability for the suppliers on the value chain. Contracting with Boeing means a sustainable future for suppliers, as they will receive the benefits of Boeing's diverse customer base and opportunities.

Boeing is known as a leader in the aerospace industry. Their brand is associated with not only being one of the largest aircraft suppliers, but also for a high reputation for quality and dependability. Any company that contracts for Boeing and that provides quality service and products will inherit of the benefits of Boeing's good name in the aerospace industry. Contracting for Boeing not only has significant chances of for financial benefits, but will help to build the reputation and brand equity of Premium AEROTEC. These are among only a few of the advantages of contracting with Boeing.

1.2 Problem

Competition is fierce in the aerospace industry and Boeing is a well sought after customer by many suppliers. Boeing has some of the highest standards in the aerospace industry and its suppliers must also a live up to their expectations. A small supplier for Boeing must not only be able to deliver products on time, but they must be able to meet to Boeing's tough standards. Premium AEROTEC must demonstrate that it can deliver the components that Boeing needs at a price of that is within their standards. It must demonstrate that it can deliver a product that is on time and that meets Boeing's expectations. They must be able to do this consistently in order to become a key supplier and to maintain that position. The competition will always be ready to step in and take their place. Therefore premium AEROTEC must carefully analyze their position in relation to the other competition and their ability to meet Boeing's demands. This study will address how Premium AEROTEC can leverage their position to become a key supplier for the Boeing Corporation.

1.3 Setting

The study will use sources that can be easily gathered by the researcher using standard research methods. The analysis will use a number of sources from the Internet and print sources in order to derive the conclusions about how Premium AEROTEC can gain a position as a supplier for the Boeing Corporation.

1.4 Objectives of the thesis

This thesis will explore what is needed to attract Boeing as a major customer. The objectives of the study are as follows:

To explore the situation in the aircraft supply industry

To examine the strengths and weaknesses of Premium AEROTEC in relation to the competition

To examine the political factors that affect Premium AEROTEC's ability to gain billing as a major customer.

To examine the effects of direct exporting, indirect exporting, licensing, joint venture, indirect investment in relationship to Premium AEROTEC's ability to gain Boeing as a major customer.

To perform an analysis of potential customers

To perform an analysis of the Boeing Corporation's needs

To examine how Premium AEROTEC can meet customer needs and respond to Boeing's outsourcing needs of an relation to those customers

1.5 Importance of winning Boeing as a major customer

Winning Boeing as a major customer would have several important effects on Premium AEROTEC. Among these factors are:

Financial gain from the direct sales of products to Boeing

The brand equity associated with being associated with the biggest-based manufacturer in the world

The stability and long-term growth due to the stability of the contracting company

The ability to attract other customers as a result of an association with Boeing

Increased positive perception of Premium AEROTEC's products and brands due to their ability to meet the demands of a quality conscious customers such as Boeing

1.6. Oligopolistic situation in aircraft manufacturing market

An oligopoly exists when only a small number of sellers supply a particular market. They have the tendency to form a cartel and to form agreements that in order to stabilize in unstable market. Formal agreements are often illegal in many countries, but often these types of agreements take place in an informal manner and cannot be found by authorities. The aircraft supply industry is an industry that has a small number of players. Typically, it is the leader in the market that sets the prices. Others must follow their lead and have little room to respond in order to increase their competitiveness.

However, in the aircraft industry, a customer as large as Boeing can have a significant influence on the prices. Boeing does not always give the contract to the lowest bid, but they have many other factors that they take into consideration such as quality and the ability to produce on time and in the quantities that they need. Players will adjust their quantities to increase their market share, according to competition actions

. Boeing is so large that it can the dictate many of the terms of the suppliers and even though a technical oligopoly exists, the dynamics of this market are different than any other because of the power of the customer as opposed to the suppliers in the industry.

1.7 B2B relationship in general + High Tec B2B marketing / relations

The nature of interactions between different entities within the market are reactive to various market conditions. The actions of competitors also have an influence on the relationships that form within and outside of the market. In the case of high tech firms, companies must often form relationships in order to supply a particular good or service to a major customer such as Boeing. They may need to rely on mutual strengths and weaknesses within the individual companies. B2B relationships are unique in that each company is a competitor, but they may have to rely on each other in order meet the needs of the customer. This is the… READ MORE

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