Lockheed Martin Business Model

Lockheed Martin is an American global aerospace and defense company and is the world’s largest defense contractor based on revenue. Lockheed’s largest project of the 21st century is the F-35 Lightning II, a fifth generation combat aircraft. In 1993, McDonnell Douglas, Northrop Grumman, Boeing, and Lockheed Martin entered the Joint Strike Fighter competition. The goal of the competition was to replace various aircraft used by the military including the F-16. Lockheed’s entry into the competition, the X-35, was based on the advanced F-22 Raptor and had several variants including the Short Takeoff/Vertical Landing (STOVL). Lockheed would go on to win the competition in 2001, with a predicted production contract worth over $200 billion.

The X-35
The first flight of the A variant plane occurred 3 years later in December 2006 and the plane has been in production since that time. As of November 2016, just over 180 F-35s have been built and sent to customers. The F-35 B variant was the first to enter service in the Marine Corps in 2015. In August of 2016, the F-35 A was introduced in the Air Force and the C variant is planned to be introduced in the Navy by 2018. The F-35 is currently in Low Rate Initial Production (LRIP) and is incrementally transitioning to full rate production by 2020. The program has been under scrutiny for several cost overruns and delays that have occurred throughout the course of the program. However, as Lockheed transitions to full rate production, the unit costs for the planes will begin to
F-35 program managers currently serve for 2 years and can come from both the Navy and Air Force. However, the Department of Defense has been looking into removing the term limits for the F-35 program manager. In 2012, when the Air Force Major General Christopher Bogdan was named the new manager, he called “the relationship between contractor Lockheed Martin and the program office the worst I have ever seen.”

3. What new and innovative technology is included in the F-35?

The F-35 has a variety of sensors and technologies that make it the most advanced manned fighter ever created. The F-35’s shape and antennas allow it to have Very Low Observable (VLO) stealth capability. The aircraft is also extremely agile, giving it a tactical advantage over other aircraft in the sky. The F-35 includes a helmet mounted display system that uses sensors to allow the pilot have a 360 field of view. Additionally, the network capabilities within the plane allow sensor information to be transmitted to military commanders and controllers.

4. How is the F-35 assembled and who are the suppliers for the