Lockheed Martin is one of the largest aerospace and defense companies in the world, with a longstanding history of success. Founded in 1912, the company has continuously adapted its business strategy to remain competitive and relevant within its industry. In this article, we’ll take a deep dive into the business strategy behind Lockheed Martin’s success.
Core Competencies
One of the key elements of Lockheed Martin’s business strategy is its focus on core competencies. The company’s core competencies include engineering, research and development, and advanced manufacturing. By focusing on these core competencies, the company is able to remain competitive by continually innovating and staying ahead of its competitors.
Acquisitions
Another important aspect of Lockheed Martin’s business strategy is its use of acquisitions. In order to expand into new markets, the company often acquires smaller companies that have expertise in the area of interest. For example, Lockheed Martin recently acquired Aerojet Rocketdyne, a leading rocket propulsion provider. This acquisition will enable the company to expand its space capabilities and remain competitive within the industry.
Diversification
Lockheed Martin also places a strong emphasis on diversification. The company operates within multiple markets, including aerospace, defense, and energy. By diversifying its business, the company is able to reduce its risk and remain profitable even if one area of the business experiences a downturn.
Innovation
Innovation is critical to succeeding within the highly competitive aerospace and defense industry. Lockheed Martin invests heavily in research and development, with the goal of developing new technologies and products that will help it maintain a competitive edge. For example, the company recently introduced the F-35 fighter jet, which is the most advanced combat aircraft in the world.
Partnerships
Finally, partnerships play a crucial role in Lockheed Martin’s business strategy. The company partners with other companies, universities, and government agencies to develop new technologies and products. These partnerships are often key to the company’s success in winning contracts.
Conclusion
Lockheed Martin’s success is due in part to its focus on core competencies, use of acquisitions, diversification, investment in innovation, and emphasis on partnerships. By remaining adaptable and innovating within its industry, the company has been able to remain competitive for over 100 years. As the aerospace and defense industry continues to evolve, it will be interesting to see what strategies Lockheed Martin employs to remain successful.
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