BAE Systems SWOT Analysis and Future

This assignment examines British Aerospace (BAE) Systems by conducting a SWOT analysis of its current position within the industry. The analysis considers both internal factors such as strengths and weaknesses, as well as external factors like opportunities and threats. Furthermore, the assignment delves into BAE's future prospects, particularly focusing on the growing importance of the aerospace industry and how BAE can leverage technological advancements to remain competitive.

AEROSPACE INDUSTRY

Table of Contents
COMPANY OVERVIEW....................................................................................................................1
INTRODUCTION..............................................................................................................................1
Competitor analysis...................................................................................................................2
Companies internet site............................................................................................................ 3
CONCLUSION................................................................................................................................. 3
REFERENCES...................................................................................................................................4

COMPANY OVERVIEW
British Aerospace plc was a manufacturer of defence-systems, British aircraft and munitions.
Its head office was at Warkwick House in Farnborough Aerospace centre in Farnborough,
Hampshire. It dealt in making defence electronics and naval shipbuilding subsidiary and that
formed BAE system. It was founded on 29 April 1977 and deal in making aircraft. The products
that the company was specialised in producing were such as Aircraft production like BAe 125,
BAe 146, Hawker 800, etc. Airliner wing production that includes Airbus A300, A310, A320
family etc. (Simmie, Sternberg and Carpenter, 2014). It also deals in missiles production such as
ALARM, Rapier, Sea Wolf, Sea Eagle. The products that company made were also Unmanned Air
Vehicles, Space hardware and Security systems that they started producing for British military.
INTRODUCTION
British Aerospace is a company that was established in 1977 began producing and providing
for the field of Aerospace. They provided services such as defence and security services and
systems they basted in Farnborugh, Hampshire. In 1991 the company expanded by acquiring
Marconi Electroinic systems. BAE supplies very advanced top range, technology based defence
aerospace and security systems. they have more than 80,000 employees in more than 40
countries. They worked with clients that are either customers or partners in the local field. They
develop, create and provide support systems and offer products that’s supports the military by
enhancing their security and securing their valuable information.
It was a British government subsidiary and later in 1981 government sold its 51.57% shares to
form it Public Ltd company. The British government later sold its remaining shares in 1985 and
kept a £1 golden share that allows it to veto foreign control of the company. The company was
later known as BAE system and in 1985 signed a contract with Saudi Arabian government the
Al- Yamamah arms deal and BAe was as prime contractor. In 1988 BAe purchased Rover group
and also in 1991 acquired 30% shares interest in Hutchison Telecommunications from stock
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swap and Hutchison was given 65% shares for controlling the stake. In 1998, the major issue
that emerged was Defence consolidation that linked numerous reports of European defence
groups and also with American Defence contractor. It was anticipated that BAe would merge
with Germany's DASA and to make the biggest European aerospace industry, but in late 1999
the company was formed named New British aerospace and known as BAE system (Pescod,
Hydeb and Waddington, Bae Systems Plc, 2017). The BAE system is a global defence, aerospace
and security company that employees people from worldwide around 83,000 of them. They
have a wide range of products and services that covers air, land and naval forces. They also
have an excellent advanced, security, electronics, information technology and support services.
Competitor analysis
The biggest threat to the company is their competitors in the market, so do BAE System
have its competitors such as General Dynamics Corporation, Northern Grumman Corporation
and Sotera Defence Solutions, Inc. The General Dynamics Corporation is the biggest threat to
the company as it is a prime military contractor and as earlier to BAE systems the biggest sales
for General Dynamics are generated by the US government that accounts for 60% of the
company’s sales.
Given facts but you don’t tell me the matter?
Generally, I have to analysis all the facts?
Each one of the Competitor I have to analysis
tell me how and why each one threat BAE?
The threat to the company is increasing as the BAE system is trying to develop products with
advance technology and generating competition in the market. The warship weapons have
been increasingly adopted with new technologies and also in high demand by the different
countries.
The competitors such as Northern Grumman Corporation and Sotera Defence Solutions, Inc. are
also in the market and giving tough competition to the company as General Dynamics
Corporation.
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Northern Grumman Corporation is an American global aerospace and defence technology
company that deals in weapons and technology that is helpful for the defence services, they
deal in products such as Aerospace systems and warship weapons as well.
Sotera Defence Solutions, Inc is a company that delivers national security mission solutions to
protect the safety and economic conditions of the country. They deliver solutions to meet
diverse government security systems. Their products are also developed with the most
advanced technology that gives tough competition to other companies.
The company deals in products such as information technology and collection of command
control systems (Wulfsberg, Herrmann and Fette, 2014). Marine products such as warships,
commercial tankers and nuclear submarines. The threats can be evaluated by comparing their
strengths and weakness, the biggest threat that they posses is by their sales to US government
and their advance product and usage of advance technology in the business. Their marketing
strategies in the continents and acquisition to the subsidiaries to maximise the ROI. They have a
well-planned strategy and have identified new market where they find opportunities and made
strategies for the existing market, they are continuous developing their business in the
countries that are in the need of these technologies and requirement for new and advance war
equipment’s and security systems. The companies threat is that they are producing many
products that are developed with new technologies and have the best security systems that
provide effectiveness in their business. BAE system is the acquisition of British aerospace and
delivers their quality products for the defence. Whereas, other companies have the opportunity
to target new market as they have their biggest buyers the US government who is acquiring all
the products to be the powerful country in terms of weapons (Young, Hood and Hamill, 2017).
The other countries are also trying to acquire missiles that are developed with the best
technology and so opening the trend for new entrants and provide their products at the best
price. There is a threat from new entrants as they will try to focus on the market and enter with
more advance technology that will affect the wok culture of these companies and they will have
top develop new strategies to survive in the market. These companies are already a
competition to each other and entry of new company will affect the market conditions and all
the companies will try to sale products at the cheaper price. This will also affect as all the
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developing countries will also be able to buy these products and situation of war can arise.
Another threat is their price policy and in the global world many companies are facing war
situations and demand for weapons and security systems is increasing so they competition
between the companies is to provide products to those countries and be a leader in aerospace
business. The General Dynamics weakness is that they do not acquire aircraft business which
allows BAE system to be the leading acquirer of business (Jones, and Nott, Bae System Plc,
2015).
For Every Piece of Evidence you need to say 1) how it relates to the Question & if different 2)
how it fits in your argument… e.g. Other countries are also trying to acquire missiles… how are
new entrants/products a threat to an existing proven name?
Also on missiles its not BAE its MBDA (A European Collective that BAE are part of under the
British signatories of the European Defence Procurement plan) you have to give analysis =How?
Why?
Companies internet site
bae.co.uk
The companies' website gives information about their productivity, their relation, their growth
and all their subsidiaries. The company’s full information, their history and all the general
information required about the company.
CONCLUSION
From the above information it is stated that British aerospace was the first
manufacturer of British aircraft, missiles etc. They deal in developing products for war and for
British army and was a government agency and later sold its share and from them the company
was formed as BAE system. They are specialised in developing security system that is very
useful for the defence personal. Later they acquired many small businesses to be the leading
aerospace industry and managed to develop new technologies in their aerospace business.
They need to focus on the threats that they are getting from other industries and improve their
innovations and technologies but they have an advantage of producing aircraft. They can
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improve their product range by enhancing new technologies in their products and producing
new innovations.
Cute some of the facts and analysis the important facts
In order to improve their services in the market they need to reach those areas of the market
where it is a requirement of enhancing technology and more developed security systems. Their
focus should be on acquiring business activities from developing their security system for
defense and other subsidiaries. [ADD MORE WAYS TO IMPROVE THEIR BUSINESS, SUCH AS
SERVICES AND PRODUCTS THEY CAN OFFER]
 COMMENT ON THE COMPANY WEBSITE, HOW EASY WAS THE WEBSITE TO NAVIGATE
AND FIND RELEVANT INFORMATION ABOUT THE COMPANY.
 I HAVE TO COVER THESE POINTS
You should talk about the company future including new products / services that the company
could develop in order to improve the company’s position in the market
 WHAT IS THE FUTURE OF THE COMPANY IN ITS MARKET?
 ARE THERE NEW PRODUCTS OR SERVICES THAT THE COMPANY COULD DEVLOP IN
ORDER TO IMPROVE THE COMPANIES POSITION IN ITS MARKET?
The company needs to develop new products such as warships, tanks that they are already
developing but they just need to enhance their abilities and take over other companies. The
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products like tanks, submarines are being developed with the best technology they just need to
build these more effective and powerful. There future is also depended on the durability and
effectiveness of the product. To develop their future they have to acquire the best technology
and recruit talented employees to save the future of the company. The future is going to be of
aerospace industry where one wants to travel faster and reach there destinations sooner. The
technology is advancing and many countries are focusing to develop in the aerospace industry.
BAE has good opportunities to develop products to attract their customers with their
technology as well. This will help them to make their spot in the market and compete with their
competitors well and effectively. The company website is available on the internet and was also
easier to find and it had all the required information relating to the company products and its
requirement to develop and act in the future.
REFERENCES
Bull, J. W., Zähringer, J. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and
threats: A SWOT analysis of the ecosystem services framework. Ecosystem services. 17.
pp.99-111.
Duan, B., Li, L. and Yao, H., 2016, October. Research on aerospace quality improvement
solutions. In Reliability, Maintainability and Safety (ICRMS), 2016 11th International
Conference on (pp. 1-5). IEEE.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Jones, M. A. and Nott, A. G., Bae System Plc, 2015. Simulation system user interface. U.S.
Patent Application 15/515.192.
Pescod, C. R., Hyde, L. A. and Waddington, S. W., Bae Systems Plc, 2017. Data retrieval system
in an aircraft with data stored during a flight and wirelessly transmitted to a ground
system after landing using a electromagnetically sealed device which can be open or
closed. U.S. Patent 9.682.785.
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Simmie, J., Sternberg, R. and Carpenter, J., 2014. New technological path creation: evidence
from the British and German wind energy industries. Journal of Evolutionary
Economics. 24(4). pp.875-904.
Wulfsberg, J., Herrmann, A. and Fette, M., 2014. Combination of carbon fibre sheet moulding
compound and prepreg compression moulding in aerospace industry. Procedia
Engineering. 81. pp.1601-1607.
Young, S., Hood, N. and Hamill, J., 2017. Foreign multinationals and the British economy:
Impact and policy. Routledge.
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