What challenges and opportunities did Boeing face in the late 1990s? Challenges Boeing Company is a global enterprise that was founded in 1916 by William Boeing. The company is considered the world’s largest producer of both military and commercial aircraft. Despite being a leading company in terms of revenue production, it faced several challenges in the close of the 1990s. To start with, Boeing experienced a travel cost competition. The US administration reduced air travel restrictions in 1977. By 1999, more airlines were offering the same services at competitive prices. The aircraft production also faced technical issues, which saw a decline in the number of customers using Boeing airline following the witnessed air travel postponement that was caused by technical errors it experienced at that time. Boeing also faced the challenge of deciding the best strategy to use to remain at the top of the competition. It had run short of its market shares to the Airbus Company, which was supported by the US administration. This situation forced it to review its industrial competition strategies. It had to decide on whether to adopt a strategy that reduced the cost of traveling or one that raised revenue by creating value of the offered services. Technological risk stood as a challenge to this company. Boeing decided to develop the ‘787 Dreamliner’, which was to deliver its passengers straight to their destination at a reduced fuel cost and minimal stopovers. To achieve this goal, the airplane was to be made of 50% carbon fiber-reinforced plastics, 12 % titanium, and a reduction of 85 % for aluminum that was used in the old plane structural components. Lithium-ion batteries, which it was planning to use, were known to overheat to the extent of producing fire. This technological innovation had not been confirmed as effective in an airplane. Therefore, many people had fears about project failure. Boeing had to perform various tests, which imposed additional costs to determine its project feasibility level before continuing with the project. The poor strategic management technique that was adopted by Boeing was a big risk. Initially, after the company adopted outsourcing, the management department embraced the whole idea without critically looking at the problems associated with this supply chain. Moreover, the company did not hire supply chain expertise that would do a critical analysis of the outsourcing to determine the problems that are associated with outsourcing in an effort to determine the best way to deal with them. This situation led to the crumbling down of the project. The company faced coordination risk. The fact that different suppliers around the globe produced most of the body parts of the 787 Dreamliner, the company faced the problem of the body parts not interlocking with those produced by other companies. This case led to the product being returned to the supplier for reproduction. This experience was costly and time-consuming for the company. The problem occurred because of poor strategic management that had been adopted by this company. Opportunities Boeing merging with McDonnell Douglas Corporation in 1996 was a great opportunity for its eco