UGB335 - Strategic Marketing Evaluation: The Raytheon Company

This case study provides a strategic marketing evaluation of The Raytheon Company, a leading US defense service and product provider. It begins with an industry background, followed by an analysis of the company's mission, vision, and critical company aspects using the Resource-Based View (RBV). Tangible and intangible resources are identified, and a competitive analysis is conducted, focusing on key competitors like Lockheed Martin and General Dynamics. The study also includes a customer analysis, covering segmentation, targeting, and positioning strategies. Critical contextual factors and issues within the defense market, such as market structure and trends, are discussed. The analysis concludes that Raytheon's strategic management and effective STP strategies contribute significantly to its competitive advantage in the global market.

THE RAYTHEON COMPANY - Strategic
Marketing Evaluation

Contents
1.0 Introduction:....................................................................................................................................3
1.1 Industry Background:.......................................................................................................................3
1.2 Company’s Mission and Vision Statement:......................................................................................4
1.3 Critical Company Analysis:...............................................................................................................4
1.3.1 RBV (Resource Based View):.....................................................................................................5
1.3.2 Tangible and Intangible resources:...........................................................................................6
1.4 Critical Competitive Analysis:...........................................................................................................7
1.5 Critical Customer Analysis:..............................................................................................................7
1.5.1 Segmentation:..........................................................................................................................7
1.5.2 Targeting:..................................................................................................................................8
1.5.3 Positioning:...............................................................................................................................8
1.6 Critical Contextual factors/Issues:...................................................................................................8
1.7 Conclusion:......................................................................................................................................8
References:..........................................................................................................................................10

1.0 Introduction:
Raytheon was incorporated in the year 1922 and is a chief US defence service and product
provider that focus upon providing weapons as well as commercial electronics used for the
military services. Moreover, there are nine subdivision of the company that provides control
and command, missiles, cyberspace technology, precision weapons and so on. As of the 2nd
quarter of 2017, 64,000 employees are employed under the company and headquarter of the
company is located in Massachusetts in United States (www.raytheon.com, 2018).
This report will focus upon analyzing the situational context of the company with the help of
Porter’s Five Forces analysis and will also undertake critical company analysis with the help
of understanding the mission and vision of the company along with resource based view of
the company as well. Moreover, critical competitive analysis of the company will be done
along with critical analysis of the customers of the organization. Lastly, the critical contextual
issues will be stated from defence market in relation to structure of the market, the issues
related to the market as well as the trends.
1.1 Industry Background:
Raytheon is the leader in the global technological market and is also the leading US
Company in the contractor market. Manufacturing of weapons that are innovative in nature
and also sale of those products is the main focus of the company in the US and international
market (Springer, 2013). In the year 1922, the company came up as American Appliance that
is formed by Smith and Marshall and later in the year 1925, the name was changed to
Raytheon Manufacturing Company. Moreover, in 1940, Raytheon was chosen for making
magnetrons and they have won the contract for making 100 radar systems for ships in US
Navy. Furthermore, in 1940, they developed Lark Missile which has created history and
during the year 1965-1970, they acquired Amana Refrigeration and have introduced their
own microwave. Later in 1976, they started manufacturing Patriot Missile defence system
and has acquired as well as sold many businesses in order to grow as an electronics and
defence company during 90s (Sandler et al., 2007). At present time, Raytheon is one of the
most significant defence as well as electronic company in the market with leading technology
and innovation to support their products. There are a few competitors of Raytheon in the

market at present and they are Lockheed Martin Corporation, general Dynamics Corporation
as well as Textron Inc.
1.2 Company’s Mission and Vision Statement:
The mission of the company states that due to the strong global positioning in the world
market, the company focus upon providing the customers with bets technological solution
with the help of innovation and there are 80 countries all over the world, where the products
of the company are supplied (www.raytheon.com, 2018).
The vision of the company is divided into five parts as mentioned below;
Trust:
Raytheon takes pride in their business culture as they perform the right thing and are honest
in their service.
Respect:
Raytheon is comprehensive and also embrace the perspectives that are diverse in nature and
also values the responsibilities that they play in their shared vision.
Innovation:
In order to drive the growth of the world, they act with speed and focus upon innovation of
technologies (www.raytheon.com, 2018).
Collaboration:
The powerful ideas, in depth relationship as well as great opportunities are valued by
Raytheon in order to attain the shared objectives.
Commitment:
Lastly, Raytheon also honour their commitments as they focus upon the need of their
customers and also serves the communities where they perform their business and also lets
the community to serve them as well.

1.3 Critical Company Analysis:
The critical analysis of the company is focussed upon the fact that are used for the purpose of
collecting information about the company and how the strategies used by the company helps
in development of the competitive advantage (Barney et al., 2010).
1.3.1 RBV (Resource Based View):
The resource based view is the framework that helps in providing a better knowledge towards
the resources that are used by the company so that competitive advantage can be gained in the
market (Hill et al., 2014).
VRIO Framework for Raytheon:
Valuable:
Raytheon have a strong presence in many countries over the globe and there are 80 countries
which are customers of the company to whom Raytheon supplies their weapons and
technologically upgraded products. Thus, due to the strong global presence over the world,
Raytheon owns competitive advantage over the competitors. There are a variety of divisions,
in which Raytheon tops the chart in the market and in missile segment; Raytheon stands in
the second place with 16.05% of market share while Lockheed martin Corp (Leveson, 2011).
Stands in the first spot with 18.83% of market share. Moreover, in space and airborne system,
Raytheon also stands in the same place (16.52%) of market share while Northrop Grumman
Corp stands in the first place with (20.19%) of market share. In integrated defence system,
Raytheon owns 4.1% market share compared to that of 10.22% of market share of Honeywell
international Inc. and 5.81% of market share of Boeing (Bergmann, 2017). Thus, it can be
said that due to the global presence so vast in nature, the resources of the company is very
valuable.
Rare:

Raytheon is one of the most recognizable companies for the production and supply of defence
systems and as their business are diversified in various divisions, they tops or ranks among
top 5 members of the competition.
Immitable:
Due to the fact that Raytheon is present globally in 80 countries throughout the world and due
to the large size of the organization
with its presence based in Germany,
UK, US and Australia, Raytheon is
taking advantage of this presence
throughout the world and in the short
run no other companies will be able
to imitate Raytheon due to their large
presence and it will take huge amount
of time for the imitation of this
ability of Raytheon and in that time
Raytheon will be able to increase
their market share as well as their partner countries (Leoni et al., 2017). This proves the fact
that service of Raytheon is non-imitable in the world market.
Organized:
Due to the fact of huge amount of global presence of Raytheon in more than 80 partner
countries, the superiority of the products and the services of the company cannot be doubted
and also there are more than 19 offices of the company that are located on four countries
which proves the huge size of the organization and also proves that the company is very
organized which helps them earning competitive advantage in the market.
1.3.2 Tangible and Intangible resources:
There are tangible as well as intangible resources of the company and among the tangible
resources, there are products of the company which are of high quality in nature and also
innovative capabilities present in the products of Raytheon helps them to gain competitive
advantage (Govindarajan, 2016). Some of the products of the company are integrated defence
system (Patriot, AMDR, C5I, Zumwalt and so on), intelligent information and services
(environmental intelligence, classified, cyber services and so on), space and airborne system

(airborne radars, space sensors, special mission aircraft, electric warfare and so on)
(www.raytheon.com, 2018). Moreover, Raytheon is also a technologically advanced
company that provides upgraded technology in their products which helps them to gain
competitive advantage and also the revenue that they make increases each year and also the
amount of employees which provides them with competitive advantage in the market.
One the other hand, the intangible resources of the company include the brand name which is
famous in 80 international countries with whom they have partnership and the company also
promotes ethics while doing their business. Moreover, Raytheon also promotes workplace
gender equality by increasing the number of women in their workplace. Also, the customer
base of the company is very loyal towards the company product and services and thus it gains
competitive advantage over their rivals.
1.4 Critical Competitive Analysis:
The strategy that has helped Raytheon to achieve success in the world market is based upon
their strength areas in within the mission of the organization and they focus upon providing
integrated end products which maintain balance with the product of their competitors.
Raytheon also focus upon input of the end products and carry on development of the
efficiencies that are already established in order to gain competitive advantage in the market.
Moreover, the strategy of the company is based upon working with department of defence
and also supplying the countries with weapons before any attack is conducted by the
opponents (Ferguson et al., 2017). There is
engagement of the country focussed upon
by Raytheon which provides them with
many customers and at present, the 31% of
the revenue generated by Raytheon is
derived from sales in the international
market. Lockheed Martin Corporation,
General Dynamics Corporation as well as
Textron Inc., can be regarded as the main
competitors of the company who compete in a global term for gaining the market shares
among each other.

1.5 Critical Customer Analysis:
While STP of missile system for Raytheon is done, it can be found that there are a variety of
segments that have been identified by the company among which the most profitable segment
is targeted and the product is positioned for attracting the segments towards the product.
1.5.1 Segmentation:
The segments that have been
identified by Raytheon for the
purpose of providing their
services include US Navy, US
Air Force, and US Army, the
Missile Defence Agency as
well as US Marine Corps and 40 other allied nations (www.marketrealist.com, 2018).
1.5.2 Targeting:
The targeting for the products are done on the basis of targeting those states of the countries
which are focusing upon increasing their military strengths in the world and are also focusing
upon buying new missiles in order to strengthen their army.
1.5.3 Positioning:
The positioning of the products is done in the luxurious line as the products are costly in
nature due to the research and development techniques that the company bears for the
production of the innovative and technologically upgraded missiles.
1.6 Critical Contextual factors/Issues:
The critical factors that helps in the growth of Raytheon in the market has been discussed
above and as per the forecast, the market size of the company is also about to increase during
the near future and Raytheon’s defence as well as cyber security division will face the most
growth in the upcoming years. Moreover, Raytheon is also expected to increase their market
share by 2020 with the help of cyber security segmentation as well as with the help of 3D
printing (Hershey et al., 2017). With the rise of the gross margin of the company, the
operating margin of the company is also expected to increase as well.

1.7 Conclusion:
From the discussion above, it can be concluded that the strategic management of the
company Raytheon is helping them to achieve competitive advantage in the market with the
help of devising effective strategies. Moreover proper segmentation, targeting and positioning
strategy is helping the company to gain an edge over the rivals of the company in the foreign
market as well.

References:
Barney, J.B. and Hesterly, W.S., 2010. Strategic management and competitive advantage:
Concepts. Prentice hall.
Bergmann, K., 2017. Raytheon Australia managing director Michael Ward speaks with Apdr
editor Kym Bergmann. Asia-Pacific Defence Reporter (2002), 43(4), p.14.Bergmann, K.,
2017. Raytheon Australia managing director Michael Ward speaks with Apdr editor Kym
Bergmann. Asia-Pacific Defence Reporter (2002), 43(4), p.14.
Ferguson, C.D. and MacDonald, B.W., 2017. Nuclear dynamics in a multipolar strategic
ballistic missile defense world.
Govindarajan, V., 2016. The Three-Box Solution: A Strategy for Leading Innovation.
Harvard Business Review Press.
Hershey, P.C., Dehnert, R.E., Williams, J.J. and Wisniewski, D.J., Raytheon Co, 2017.
System and method for asymmetric missile defense. U.S. Patent 9,726,460.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Leoni, R., Kolias, N., Jablonski, P., Altunkilic, F., Johnson, E. and Bourcy, W., 2017,
October. Raytheon high power density GaN technology. In Compound Semiconductor
Integrated Circuit Symposium (CSICS), 2017 IEEE (pp. 1-4). IEEE.

Leveson, N., 2011. Engineering a safer world: Systems thinking applied to safety. MIT press.
Sandler, T. and Hartley, K. eds., 2007. Handbook of Defense Economics: Defense in a
globalized world. Elsevier.
Springer, P.J., 2013. Military robots and drones: a reference handbook. ABC-CLIO.
www.marketrealist.com. (2018). A Look at Raytheon’s Missile Systems Segment. [online]
Available at: https://marketrealist.com/2015/04/look-raytheons-missile-systems-segment
[Accessed 16 Apr. 2018].
www.raytheon.com. (2018). RAYTHEON AT A GLANCE. [online] Available at:
https://www.raytheon.com/ourcompany/ [Accessed 16 Apr. 2018].