The Opening Case identifies how Boeing's foreign suppliersof whom there were only a few 45 years agonow account for around 65 per cent of the value of its latest aircraft, the 787 Dreamliner. There are three reasons for this dramatic change.

First, in the current climate, 80 per cent of Boeing's customers are foreign airlines, and to sell to those nations it often helps to give business to them. Second, dispersing component production to the most capable 'best-practice' parts suppliers around the world is seen as an effective strategy.Third, outsourcing parts supply on the 787 has reduced some of the risks and costs associated with in-house production. Moreover, this strategy allows for the 'higher-level' strategic aspectssuch as engineering design, marketing, sales and final assembly in Seattleto be kept in-house.

However, outsourcing went too far, with Boeing experiencing problems in the production process such as production schedules not being met, parts manufacturing not coming together as well as envisioned, and occasional loss of suppliers due to delivery unreliability and quality standards not being met. Boeing has now addressed these issues and moved to produce a lot of its components in-house once again.