INTRODUCING TECHNOLOGICALLY ADVANCED PRODUCTS - STRATEGIES IN THE COMMERCIAL AIRCRAFT INDUSTRY

This article studies the strategic decision making involved in introdu cing technologically advanced commercial aircraft. It compares the dec isions made by McDonnell-Douglas Corporation with those of Boeing Airc raft Company in the late 1970s and early 1980s. The study concludes th at strategic decisions were made based on each company's vision of its core business. This article examines the decisions of two commercial aircraft firms as they decided whether or not to introduce new technol ogically advanced airliners. By contrasting the decision-making proces s of two competitors that faced the same external and objective situat ions, we can determine some of the factors that explain why new techno logically advanced products are or are not introduced into the market place. The time frame of this study covers the late 1970s and the earl y 1980s. The next section introduces the questions we ask. This is fol lowed by a discussion of the external environment faced by the firms. Then we provide a brief history of the two companies, discuss the oppo rtunities and risks that were involved in the decisions, and analyze t hose decisions. The final section presents our conclusions.