Defense and aerospace is a very broad and extensive industry. It is very hard to tell who their competition is mainly because the companies in this industry take over their market. The reason for this is because they are such large corporations producing products that are needed for the government (i.e.: aircrafts, military products, satellites, missiles, defense systems, etc.). It is also very rare to find the Defense and Aerospace industry’s competitors in the United States, because most of the companies in the industry directly deal with the government and/or are deal internationally with foreigners.
The competitive landscape in the U.S. among companies in this industry is very limited. Recently, Boeing has been reaching out to Middle-eastern investors to fund aircraft deals. European banks looked into the present European debt crisis and its future effect on them, giving Middle-East investors new aircraft opportunities. Boeing did not hesitate one second to take advantage of this and expand their market for revenue growth. The importance of this geographic expansion leads to higher competition not only in Europe (Airbus), but also in the U.S (Lockheed Martin). In order for similar companies to stay in competition with Boeing’s progressive company, they must produce comparable innovations attempting to expand at similar rates to its competitor (Boeing).
Boeing works other companies in the Middle East and I think thats why their relationship is strong since they have new oppurtunities to develop contracts for new products.
ReplyDeleteIt is because they are constantly looking for expansion. They're company name is world renown and nations are looking to invest in what they have to offer. It is extremely difficult for another American aircraft company to compete with such a prestigious company.
ReplyDeleteThe large "players" in the industry such as Boeing, Airbus, and Lockheed Martin all tend to distribute their products to governments. With government contracts, it is not uncommon for the government to buy from a certain company over a set period of time. I feel that this may limit some aspects of competition among the large "players" and increase it among smaller companies that are not well known by the public.
ReplyDeleteI think Boeing is trying to make more relationships and to find more investors in different areas. So the company will be able to solve any problem could face in any another area.
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