From Defense to Innovation: How Lockheed Martin’s Business Strategy Has Evolved

Lockheed Martin has long been recognized as one of the leading defense contractors in the world. Founded in 1912, the company has supported a wide variety of defense initiatives over the years. From building aircraft and missiles to conducting space exploration, Lockheed Martin has always been at the forefront of innovation in the defense industry. However, over the years, the company’s business strategy has evolved to focus more on innovation than defense. In this article, we will explore how Lockheed Martin’s business strategy has evolved from defense to innovation.

Pivot to Innovation

Lockheed Martin’s pivot to innovation began in the 1990s when the company started focusing on technology-driven and data-intensive services. The company’s goal was to help the government better use and analyze data for defense purposes. The company recognized that in the new era of technology, defense strategies could only be successful if they focused on innovation and cutting-edge technology.

One of the key ways Lockheed Martin implemented this new strategy was through partnerships with technology companies. For example, in 2002, Lockheed Martin partnered with Yahoo! to build a secure email system for the U.S. government. In 2010, the company worked with Microsoft to create a cloud infrastructure for the Pentagon. This pivot to innovation allowed Lockheed Martin to move beyond defense and into other areas like cybersecurity, health care, and transportation.

Venture Capital Investments

Another way Lockheed Martin has moved towards innovation is through venture capital investments. The company established a strategic investment unit in 2007 to invest in startups and other emerging businesses focused on areas like cybersecurity and renewable energy. These investments give Lockheed Martin access to cutting-edge technologies and help the company stay ahead of its competitors.

In 2019, Lockheed Martin invested $200 million in a satellite connectivity company called Vector. The partnership allows Lockheed Martin to leverage Vector’s satellite technologies for its defense and commercial businesses. The company has also invested in startups like Terrafugia, a company that builds flying cars, and Ocean Aero, a company that develops unmanned underwater vehicles.

International Expansion

Lockheed Martin’s pivot to innovation has not been limited to the U.S. market. The company has also expanded its business globally. In 2019, Lockheed Martin opened a new innovation center in Israel to take advantage of the country’s highly skilled workforce and thriving startup ecosystem. The center will focus on developing advanced technologies like artificial intelligence, robotics, and cybersecurity.

In 2020, Lockheed Martin also announced plans to expand its presence in Australia. The company will work on massive research and development projects focused on defense, space, and cybersecurity. The initiative is expected to create thousands of new jobs in Australia and enhance the country’s defense capabilities.

Conclusion

Lockheed Martin’s business strategy has evolved significantly over the years. The company has shifted from a focus on defense to a focus on innovation and technology. This pivot has allowed the company to stay ahead of its competitors and remain one of the most successful defense contractors in the world. By partnering with technology companies, investing in startups, and expanding internationally, Lockheed Martin has established itself as a leader in innovation.

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