Augustiner

Augustiner , 5 months ago

Working for Boeings PR department must be absolute madness right now… imagine having to somehow excuse all those fuck ups and every week there is a new one

Augustiner , 5 months ago (edited 5 months ago)

What they do right is having a duopoly with Airbus, and great military contracts. So investors know that even if things are shit rn, they will probably get better again.

Furthermore, while I agree that Boeing probably will not go bankrupt over this, the valuation sometimes is not a great indicator of what’s going on internally. Enron was worth over 60 billion. Half a year later they were at zero. Now I’m not saying Boeing is nearly that bad, but they are in some trouble for sure.

Augustiner , 5 months ago

I agree with your comment, even though I have no idea on the technical aspects. What I can weigh in on is crisis management, especially communication.

Boeing needs to take control of the situation and actively start communicating and showing that they are working on fixing this thing. In Situational Crisis Communication Theory you would call it a rebuild approach. They tried denial, they tried downplaying, it’s not working. A rebuild strategy is usually the last resort, as things like admitting your mistakes and fixing them are rarely appreciated by investors. Furthermore it’s usually a huuuuge cost to do a recall on that scale. But Boeing need to show the public that they are actively working on improving the situation, to earn back their trust. So at least a partial recall should be considered.

You’re exactly right in your first paragraph about the news. The media and the public are very sensitive to Boeing quality issues rn. These articles won’t stop unless one of three things happen. Either Boeing gets their shit together and gets some effective crisis management and communication done, the company goes bust, or something else turns up in the news that replaces this. The third option will be the most likely, but it will also haunt them forever. It’s like that exploding galaxy note 7 situation. There were articles about that for every new generation of Galaxy Note, despite Samsung doing pretty well in investigating the issues. And while the following Note phones sold alright, the whole thing was a significant loss of trust and money for Samsung and enabled competitors like Huawai to catch up.

Augustiner , 5 months ago (edited 5 months ago)

I know, but no one cares who’s responsible at the moment. What people care about is that they read a new article about Boeings planes endangering passengers every 3 days. So while Delta is most likely at fault, Boeing is gonna take the hit to the company image. That’s why I was specifically speaking about the Boeing PR team. Those guys and the crisis managers won’t be able to catch a break for a loooong time.

Augustiner , 5 months ago

You misread. They got scammed into paying 10$ shipping for a supposedly free product that will never arrive.