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In the case Boeing made some key changes that actually give more power to the suppliers, for example: Outsourcing design puts competitors one step closer to being able to forward integrate by giving them what used to be the companies “crown jewels”. Outsourcing design also creates higher switching costs because design is more complicated than just manufacturing, thus locking Boeing into a relationship with the supplier once a design is began (earlier in the design process than would be required under the old model of design internally)...

As discussed previously, used planes become a credible threat to manufacturers, providing even more power to buyers. High switching costs enable established manufacturers to charge higher prices and still be competitive because airlines are really only interested in two things: total cost of ownership, and total revenue per flight...

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