In our previous article, we discovered the SWOT analysis of one of the worlds leading aerospace manufacturers, Lockheed Martin. Here we will be doing a detailed SWOT Analysis of Lockheed Martin.
It has gained such large success in the market due to the best marketing tactics that are used which create a strong brand value in the public. Nowadays as most people are using digital platforms using digital marketing for branding is one of the best marketing strategies. If you want to know what is digital marketing and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Thus this makes us keen to know how Lockheed Martin has gained such success in its industry. Here is the full detailed SWOT Analysis of Lockheed Martin. Before we start with its SWOT Analysis let us know about Lockheed as a company, its products, competitors, financials, and more.
About Lockheed Martin
It was framed by the consolidation of Lockheed Corporation with Martin Marietta in March 1995. The headquarters of Lockheed Martin is in Bethesda, Maryland, United States.
Lockheed Martin not only has a strong client base but also their major portion of revenues comes from the USA market especially in the military section. It deals with aviation, arms, safeguard, data security, and innovation organization with overall interests.
The mission of Lockheed Martin is Every day, more than 110,000 representatives come to work with them with one concentration – their clients’ missions. Regardless of whether it’s getting residents or fostering the limits of science, these missions are probably the most significant and testing on the planet. They acquire a faithful responsibility assisting their clients with succeeding, and it’s that feeling of direction and freedom to affect the planet that drives them consistently.
Quick Stats About Lockheed Martin
|Origin||Bethesda, Maryland, United States|
|No. of Employees||114,000 (2020)|
|Market Cap||$99.31 Billion (2020)|
|Annual Revenue||$8.6 Billion (2020)|
|Net Profit||$6 Billion (2020)|
Products of Lockheed Martin’s
Lockheed Martin is one of the world’s well-known companies in its industries. It provides a wide range of products in the market with the latest technology. Lockheed Martin’s strong product portfolio includes:
- Munitions ATC systems
- Ballistic missiles
- Missile defense elements
- Spacecraft & aircraft
Close Competitors of Lockheed Martin
Lockheed Martin supplies its products all over the world. Thus there are many large competitors from other countries that it needs to face. Some of Lockheed Martin’s competitors are:
- Boeing Company
- BAE Systems Plc.
- Raytheon Co.
- General Dynamics Corporation
Now that we know about the company let us start with the SWOT Analysis of Lockheed Martin.
SWOT Analysis Of Lockheed Martin
SWOT Analysis of any Company describes the company’s Strengths and Weaknesses which are the internal factors of the company and Opportunities & Threats which are the external factors of the company.
Let’s get started with the SWOT analysis of Lockheed Martin and let us check out the strengths of Lockheed Martin.
1) Strengths Of Lockheed Martin
Strengths are the positive factors of Lockheed Martin. It helps the company to know where they are good at and how they can improve in a better way. Below are the strengths of Lockheed Martin:
- Strong dealer community – It has constructed a culture among wholesalers and sellers where the sellers advance the organization’s items as well as put resources into preparing the outreach group to disclose to the client how they make the most advantages out of the existing items.
- Strong Free Cash Flow – Lockheed Martin has solid free incomes that give assets in the hand of the organization to venture into new tasks. Stable free income gives freedom to put resources into nearby product fragments. With more money in the bank, the organization can put resources into innovations just as in new items fragments.
- Good Returns on Capital Expenditure – Lockheed Martin is somewhat fruitful at the execution of new ventures and produced great profits from capital consumption by building new income streams.
- Develop new products – Fruitful history of coordinating free firms through consolidations and procurement. It has effectively incorporated various innovation organizations in the past couple of years to smooth out its tasks and to construct a dependable production network.
2) Weakness Of Lockheed Martin
These are the internal factors that affect the growth of Lockheed Martin. These help it to know what are the problems in the company. These are the areas where Lockheed Martin needs to focus more:
- Days inventories are in high contrast with the contenders – making the organization raise more cash flow to put resources into the channel. This can affect the drawn-out development of Lockheed Martin.
- Lack of effectiveness in various work societies – Even though Lockheed Martin is fruitful at incorporating little organizations it has a lot of disappointments to combine firms that have distinctive work societies.
- Lack of item request anticipation – Not excellent at item request anticipating prompting a higher pace of botched freedoms to contrast with its rivals. One reason why the day’s stock is in high contrast with its rivals is that Lockheed Martin isn’t generally excellent at request determination, consequently winding up keeping higher stock both in-house and in the channel.
- Need greater interest in innovations – Given the size of the extension and various topographies the organization is intending to venture into, Lockheed Martin needs to place more cash into innovation to coordinate the cycles no matter how you look at it. At present, the interest in innovations isn’t at standard with the vision of the organization.
- Lack of research and development – Interest in Research and Development is beneath the quickest developing players in the business. Even though Lockheed Martin is spending over the business normal on Research and Development, it doesn’t have the option to contend with the main players in the business as far as advancement. It has appeared to be an experienced firm anticipating bringing out items dependent on tried provisions on the lookout.
3) Opportunities of Lockheed Martin
Opportunities are the best possible ways for a company to grow in the market. Lexus needs to find these opportunities in the market so that it can capitalize on them. Below are the opportunities for Lockheed Martin:
- Government Green Drive – Government green drive likewise opens a chance for the acquisition of Lockheed Martin items by the state just as central government project workers.
- New business sectors due to government arrangement – the reception of innovation standard and government international alliance has given Lockheed Martin a chance to enter another developing business sector.
- Low inflation rate – The low expansion rate acquires greater steadiness in the market, empowering credit at lower loan fee to the clients of Lockheed Martin.
- Recent fads in buyer conduct – Recent fads in buyer conduct can open up new markets for Lockheed Martin. It gives an incredible chance to the association to assemble new income streams and enhance them into new item classes as well.
- Lower Transportation Cost – Diminishing the expense of transportation in light of lower delivery costs can likewise cut down the expense of Lockheed Martin’s items subsequently giving a chance to the organization – either to support its productivity or give the advantages to the clients to acquire a portion of the overall industry.
4) Threats of Lockheed Martin
Threats are the external factors that affect Lockheed Martin’s growth in the market. By knowing the potential threats to the company in advance it can make proper solutions to them. These are some threats that Lockheed Martin should focus on:
- Expectational demand – The interest of the exceptionally beneficial items is occasional in nature and any impossible occasion during the pinnacle season might affect the productivity of the organization in the short to medium term.
- Rising raw material costs – Rising crude material can represent a danger to Lockheed Martin’s productivity.
- Change in Money value – As the organization is working in various nations it is presented to cash vacillations particularly given the unpredictable political environment in several business sectors across the world.
- Legal factors – Obligation laws in various nations are unique and Lockheed Martin might be presented to different risk claims given changes in strategies in those business sectors.
With this, we have come to an end to the SWOT Analysis of Lockheed Martin. This study helps the company to know what is the potential advantages and disadvantages of the company and where it needs to improve.
On the study of the SWOT Analysis of Lockheed Martin, we know that it is one of the largest defense contractors in the world. Its strong dealer community and strong cash flow are positive points whereas government green drive and low inflation rates are some of the opportunities for Lockheed Martin. Even with such advantages, there are some flaws for the company which stops its growth.
Its lack of effectiveness in various work societies and unexpected demand from the market are some things that it needs to look out for. Even though it has such a large presence in the market it can improve its brand awareness in the market with the use of the latest digital marketing techniques. As most people nowadays are using online platforms, it can enhance the knowledge about their company in the public which will improve their brand value in the market. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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