Boom Technology, Inc.: A Strategic Evaluation of Commercial Supersonic Flight
(8 pages of text)
In December 2018, Boom Technology Inc., a start-up based in Colorado, United States, was hoping to enter the aviation market with a supersonic aircraft. The company’s founder and chief executive officer believed that customers would pay a premium for a flight that could get them to their destination in less than half the time compared to current options.
Developing meaningful relationships within this complex web of stakeholders, including large and powerful traditional aircraft makers, regulators, airlines, and end customers, was one of the biggest challenges. In addition, two other start-ups had similar aims and were also developing relationships and alliances with different businesses in the sector.
The company’s founder was contemplating several key business decisions. Was supersonic flight a technologically possible and economically viable form of transport? How could the company convince airlines to buy the supersonic aircraft? Was building a supersonic private business jet a safer bet?
This case is aimed at both graduate and postgraduate students wishing to learn more about strategy and entrepreneurship in technology markets. Technical knowledge about aviation is not a prerequisite.
After working through the case and assignment questions, students will be able to
- discuss how a new start-up can enter and grow in an established and highly regulated technology market;
- learn about choosing the most attractive market segment for initial entry; and
- discuss how to lower barriers to entry by forming strategic partnerships and/or alliances.
Transportation and Warehousing
United States, Small, 2018
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