Boeing Details Financial Hit From 737 MAX Grounding
Boeing is in hot water following two fatal crashes involving their 737 MAX jet. they are taking a hit on their financials as they have had to incur 1 billion dollars in additional cost while the planes are grounded. What is more significant is that they are facing criticism by many because of their flawed control systems. since the crash Boeing has seen lower sales and profits, and investors have cut 27 billion off Boeing market value since the first crash last month.
If we look a Boeing's situation from a marketing standpoint there are a few different ways, but first their conflict must be addressed. At this moment the Boeing name has a lot of bad publicity, this is causing the financial decline they are experiencing. This happens to many companies Boeing needs to do something to not only regain the trust of its investors and customers, but also improve their company's image. To do this Boeing can do many things such as working with experts with branding firms to increase the attractiveness of their brand as a whole. They can also try to repair the damages they have done, to do this they may think of doing something for the public or the families that have been effected by this crash. These strategies along with the commitment to improving and fixing their planes will put their brand in a better light and attract investors. Boeing also needs to reach out to their customer and investors to assure the that the problem has been fixed in their planes. to do this their executives have said to be working with airlines and pilots to regain the trust of the public. clearly Boeing has a lot to do but they can start by making it clear that the problems have been fixed. The financial future of Boeing will not be determined by these events but their revenues will continue to take hits without the trust of investors and the public.
A really interesting article!!
ReplyDeleteI enjoyed reading your article. The suggestions you provided on how Boeing can regain the trust of their customers was good. It is going to take sometime to regain their customers trust due to it being two fatal crashes. I agree that they will have to address that the problem is fixed and they will have to keep proving to their customers because this is their customers life they are talking about.
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