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Discuss the types of competetive strategies utilized by aerospace/defense companies in developing or emerging markets - Research Paper Example

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On one hand globalization has opened up the boundaries of the globe generating numerous opportunities for business organizations in the form of access to new…
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Discuss the types of competetive strategies utilized by aerospace/defense companies in developing or emerging markets
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Discuss the types of competetive strategies utilized by aerospace/defense companies in developing or emerging markets

The choice of the industry segment assumes significance considering the fact that the industry is highly capital intensive and has significant scope for growth especially in emerging nations like India and China where the demand for the products of the industry is on the rise. Moreover with comparatively small number of player and large scale restrictions on the players of this sector from the governments of nations it becomes very important to analyze this industry segment that holds a lot of promise for growth in the coming years.
The most critical aspect of business strategy for aerospace and defense companies to succeed in emerging markets is to create distinction and differentiation in the products that is perhaps the key to capture a market size in emerging nations and markets. This call for the need to introduce innovations and its consequent diffusion into the organization that would help generate distinction among the products. Companies in this sector must therefore put their focus on creating excellence in research and development to gain an upper hand in the market.
The figure above shows the spending in research and development by industries across different sectors. It is very clear from the figure that aerospace and defense is the only industry segment that has continued its spending in this area. This largely shows the importance of research and development as a critical strategy towards creating organizational excellence and generating competitive advantage. The percentage dip in spending in the aerospace and defense sector was only 1.2 percent that is far less than the industry average across all the sectors.
The success of aerospace and defense firms are also linked to the strategy with which the firms handle the suppliers. This is important considering the fact that the companies in this sector are largely engaged in assembling with the ... Read More
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