In 1997, the Boeing Commercial Aircraft Group had to make a decision regarding the production of the 747X airplane, a project involving more than 1,000 employees. By continuing to develop new aircraft, Boeing would protect its innovative culture while maintaining a good relationship with its employees and global team–but this particular development was considered risky because it required an immense supply of resources. Boeing’s biggest competitor was threatening to enter the market with a plane larger than Boeing’s existing 747, meaning that Boeing would face competition in an area of the market where it had, up to that point, a virtual monopoly. Should Boeing merely continue production of the very successful 747, or should the company design a larger derivative?-the 747X?
Darden Business Publishing – University of Virginia