Question

Which company out of the aviation and space industry could be Boeing's competitor? explain why

And base on the PEST analysis of that company

Answer 1

answer-

The Comany that could be Boeing's competitor is Lockheed martin because This compan is an American global aerospace, defense, security, and advanced technologies company and also happened to be world's largest defense contractor, based on revenue for fiscal year 2014.

Lockheed Martin operates in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.

PEST analysis of Lockheed martin-

Political factor-

Political factors play a significant role in determining the factors that can impact Lockheed Martin Corporation's long term profitability in a certain country or market. In 2009, US government contracts accounted for $38.4 billion (85%), foreign government contracts for $5.8 billion (13%), and commercial and other contracts for $900 million.

Economic factor-

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. Lockheed Martin Corporation can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Aerospace/Defense Products & Services industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization.

Social factor-

Society’s culture and way of doing things impact the culture of an organization in an environment. Shared beliefs and attitudes of the population play a great role in how marketers at Lockheed Martin Corporation will understand the customers of a given market and how they design the marketing message for Aerospace/Defense Products & Services industry consumers .The factors that can impact this company like Education level as well as education standard in the Lockheed Martin Corporation ’s industry . Entrepreneurial spirit and broader nature of the society. Some societies encourage entrepreneurship while some don’t.

Technological factor-

Technology is fast disrupting various industries across the board.technology can be opportunity as well as threat because It can offer advantage to competitors also it can help the company to create new innovative products and lower business cost.

Lockheed Martin is currently developing the F-35 Lightning II and leads the international supply chain, leads the team for the development and implementation of technology solutions for the new USAF Space Fence (AFSSS replacement),and is the primary contractor for the development of the Orion command module.