Discuss about the Compound Semiconductor Integrated Circuit Symposium.
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.
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.
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).
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.
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).
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).
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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].
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download