Competitive Analysis - General Dynamics
Report Prepared by: Report Prepared by: General Dynamics – Through the Lens of a Strategy Consultant
General Dynamics – Through the Lens of a Strategy Consultant
EXECUTIVE SUMMARY
General Dynamics (GD) has realized a long-standing history of success delivering product and service solutions since being formed in 1952. They have purposely divested themselves of technology, product and service offerings in an effort to remain focused on their core competencies and primary customer; the United States Department of Defense. While GD’s primary customer remains the DoD, they have diversified their offerings to adjacent markets within the DoD (e.g, Information Technology and Cybersecurity solutions). GD has also acquired Gulfstream and Jet Aviation, both companies that deliver aircraft and support services within the privately owned aircraft industry in an attempt to diversify their customer base.
The supporting information and recommendations focuses, primarily on GD’s involvement in the Defense industry and further concentrates on the Land Systems and Information Technology business segments; two of four business segments which GD operates.
Within the land systems, or combat vehicle customer base, GD retains the majority market share and, thus, creates a oligopolistic condition within this niche community. While there are manufacturers that are capable of delivering product solutions, GD owns and retains the design and production rights to the M1 Abrams main battle tank and the STRYKER combat vehicle platforms.
While the diversification into the sale of private aircraft industry, the market is more cyclic and volatile due to a perfect competition condition. Primary competitors being Cessna, Hawker, Bombardier and Dassault Falcon.
I recommend conglomerate diversification for expanding product and service offerings for new customers, possibly within the DoD. By leveraging the robust customer base, relationships and track record of
General Dynamics – Through the Lens of a Strategy Consultant
EXECUTIVE SUMMARY
General Dynamics (GD) has realized a long-standing history of success delivering product and service solutions since being formed in 1952. They have purposely divested themselves of technology, product and service offerings in an effort to remain focused on their core competencies and primary customer; the United States Department of Defense. While GD’s primary customer remains the DoD, they have diversified their offerings to adjacent markets within the DoD (e.g, Information Technology and Cybersecurity solutions). GD has also acquired Gulfstream and Jet Aviation, both companies that deliver aircraft and support services within the privately owned aircraft industry in an attempt to diversify their customer base.
The supporting information and recommendations focuses, primarily on GD’s involvement in the Defense industry and further concentrates on the Land Systems and Information Technology business segments; two of four business segments which GD operates.
Within the land systems, or combat vehicle customer base, GD retains the majority market share and, thus, creates a oligopolistic condition within this niche community. While there are manufacturers that are capable of delivering product solutions, GD owns and retains the design and production rights to the M1 Abrams main battle tank and the STRYKER combat vehicle platforms.
While the diversification into the sale of private aircraft industry, the market is more cyclic and volatile due to a perfect competition condition. Primary competitors being Cessna, Hawker, Bombardier and Dassault Falcon.
I recommend conglomerate diversification for expanding product and service offerings for new customers, possibly within the DoD. By leveraging the robust customer base, relationships and track record of