abhishreshthaa
Abhijeet S
American Axle & Manufacturing, Inc. (AAM) (NYSE: AXL), headquartered in Detroit, Michigan, is a manufacturer of automobile driveline and drivetrain components and systems.
AAM was founded in 1994 when a private investor group, led by Richard E. "Dick" Dauch and James W. McLernon, purchased the Final Drive and Forge Business Unit from GM's Saginaw Division. In 1999, AAM went public, and is traded as "AXL" on the New York Stock Exchange (NYSE). AAM has grown to supply various OEM manufacturers around the globe in the passenger car, light truck, and commercial vehicle segments.
AAM's World Headquarters building, erected in 2004, is located on the Detroit/Hamtramck border.
Experience curve effect
Boeing benefits from learning/experience curve effect that can enable the company to benefit from economies of scale.
Large-Scale System Integration as a core competency to provide economies of scale.
Perceived value system
Boeing pays attention to the perception of their value creation towards customers by focusing on services and reliability: see matrix price/quality below. The goal for Boeing is to be perceived as either High quality Medium Price: good value for money.
High Medium Low
High Luxury strategy Good value for money Bargain
Medium Bad value for money Average Good value for money
Low
Rip-off Bad value for money Economy
Leasing
Boeing Capital Solutions offer leasing services to airlines. Leasing is a very common practice for Boeing to build long term relationships with its customers. Airlines can not afford a 59.0 million jet if considering the turbulent environment in which they operate. Leasing has a strategic importance so.
Discount policy
Airlines are quite sensitive to discount as previously described above. Discount is an important matter for Boeing pricing policy to retain established customers and attract new ones. Like other retailers and manufacturers, Boeing periodically cuts its prices to make a sale. RYANAIR, a low cost Irish carrier disclosed the size of Boeing discount. It paid $ 51 million each for the 70 737-800s it ordered from Boeing earlier this year. This represented a discount of about 20 percent off the posted list price ($61 million to $68 million).
Analysis of Major Customers
We will now take a brief look at some of Boeing’s major customers. Boeing’s sales are almost entirely B2B driven, apart from certain B2C operations such as the companies Connexion by Boeing offering and also some of the company’s technological offerings. However for the purpose of this report and the course at hand the proceeding analysis will only be concentrated on the companies B2B operations. Boeing’s B2B customers for its commercial airplanes unit are its corporate clients.
Corporate Clients:
Boeing’s most valuable customer is the many airlines worldwide that purchase from the company. It’s difficult to truly calculate how many airlines have purchased Boeing aircrafts since its foundation in 1916; however we can look at some of the company’s most recent valuable customers. Last year alone the company sold to over 145 countries and estimates that its aircraft now account for over three quarters of the world’s fleet with nearly 12,000 jetliners in service .
The following diagram depicts certain products and services and their respective order and delivery amounts. All the information given below was collected from the Boeing website.
AAM was founded in 1994 when a private investor group, led by Richard E. "Dick" Dauch and James W. McLernon, purchased the Final Drive and Forge Business Unit from GM's Saginaw Division. In 1999, AAM went public, and is traded as "AXL" on the New York Stock Exchange (NYSE). AAM has grown to supply various OEM manufacturers around the globe in the passenger car, light truck, and commercial vehicle segments.
AAM's World Headquarters building, erected in 2004, is located on the Detroit/Hamtramck border.
Experience curve effect
Boeing benefits from learning/experience curve effect that can enable the company to benefit from economies of scale.
Large-Scale System Integration as a core competency to provide economies of scale.
Perceived value system
Boeing pays attention to the perception of their value creation towards customers by focusing on services and reliability: see matrix price/quality below. The goal for Boeing is to be perceived as either High quality Medium Price: good value for money.
High Medium Low
High Luxury strategy Good value for money Bargain
Medium Bad value for money Average Good value for money
Low
Rip-off Bad value for money Economy
Leasing
Boeing Capital Solutions offer leasing services to airlines. Leasing is a very common practice for Boeing to build long term relationships with its customers. Airlines can not afford a 59.0 million jet if considering the turbulent environment in which they operate. Leasing has a strategic importance so.
Discount policy
Airlines are quite sensitive to discount as previously described above. Discount is an important matter for Boeing pricing policy to retain established customers and attract new ones. Like other retailers and manufacturers, Boeing periodically cuts its prices to make a sale. RYANAIR, a low cost Irish carrier disclosed the size of Boeing discount. It paid $ 51 million each for the 70 737-800s it ordered from Boeing earlier this year. This represented a discount of about 20 percent off the posted list price ($61 million to $68 million).
Analysis of Major Customers
We will now take a brief look at some of Boeing’s major customers. Boeing’s sales are almost entirely B2B driven, apart from certain B2C operations such as the companies Connexion by Boeing offering and also some of the company’s technological offerings. However for the purpose of this report and the course at hand the proceeding analysis will only be concentrated on the companies B2B operations. Boeing’s B2B customers for its commercial airplanes unit are its corporate clients.
Corporate Clients:
Boeing’s most valuable customer is the many airlines worldwide that purchase from the company. It’s difficult to truly calculate how many airlines have purchased Boeing aircrafts since its foundation in 1916; however we can look at some of the company’s most recent valuable customers. Last year alone the company sold to over 145 countries and estimates that its aircraft now account for over three quarters of the world’s fleet with nearly 12,000 jetliners in service .
The following diagram depicts certain products and services and their respective order and delivery amounts. All the information given below was collected from the Boeing website.