Strategic management of Adam Aircraft Essay Example | Topics and Well Written Essays - 3000 words

Strategic management of Adam Aircraft - Essay Example In this paper, a SWOT analysis and the Five Porter Forces of Adam Aircraft will be discussed as well as the strategic management used by the company in order to improve on its performance. The SWOT analysis will be carried on the company to determine the reasons behind its success, failures and to determine the management strategies used for the company to venture into the already competitive market. For example, the market had been quite desperate for products like plane performing flawlessly overhead and so this paper will analyze whether Adam Aircraft was able to succeed from where other companies had failed. Introduction This paper is about the strategic management of Adam Aircraft. Adam Aircraft manufactures designs and eventually intends on selling aircrafts in the aerospace/aviation industry. Rick Adam is the successful entrepreneur behind this company and has identified a need in the market which made him venture into this industry. He has worked with computer engineers and pilots and this gave an insight of knowing the customer or the market needs. In this case, Rick Adam describes himself as a raging incrementalist who has chosen to taken a step by step in innovations. Marketing of airplanes has high barriers to entry and highly requires enormous amounts of capital due to the strict and very expensive policies which are dictated by the relevant authorities. Rick acknowledged all the pitfalls of being an airplane manufacture in the industry and these include building, designing, financing and long-term certification process. Rick also analyses the reasons as to why many companies have failed in trying to enter the market and why other companies succeed. From these market research processes, Rick was able to discover new ways in which he would approach the aerospace industry hence the success of Adam Aircraft. Adam Aircraft is a perfect example of a company in the aerospace/aviation industry which has defied all odds in the industry by escaping hurdles like competition from key players and technology capital to a point of success where it created A700 and A500. 2. SWOT analysis Strengths The ability to have great ideas on how to launch a new aircraft ahead of it competitors is a strength to Adam Aircraft The ten member executive team of Adam Aircraft are accomplished pilots and experts and with many years experience in the aviation industry. These accomplished pilots and experts have continued to build a ton of airplanes for the company The company understood that the only way to finance its new project budget is to cut on the development costs by at least 5% Adam Aircraft understood that the development of a new airplane project needs brilliant engineering and the development of a culture which is unheard in the aviation industry The company has had a large customer base ever since it flew its A500 The company plans on introducing A700 which will lead to a reduction in the cost per seat to a level where the average business traveler could afford the service. Rick is a specialist in computer science and IT this made him acquire