5 Forces That Shape Competition at Raytheon

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Raytheon Space and Airborne Systems (SAS) Corporation is deeply involved what Porter calls the “The Five Competitive Forces That Shape Strategy” (Porter 2008) on an organizational perspective that drives the focus of daily business. In this Raytheon (RTN) recognizes the need to capitalize and empower the supply chain management and business development internal organizations to be ahead of the curve. What does being ahead of the curve mean? For RTN it means being the trend setter and innovator by doing business before our competitors do. I am reminded by Sun Tzu’s famous quote “To know your Enemy, you must become your Enemy.” (Sunzi & Sawyer 1996) While our competitors are not enemies nor are they family members. Figure 1. Porters 5 Competitive Forces That Shape Strategy (Porter 2008) Raytheon is a major aerospace contractor to the United States Government and to foreign friendly governments, where we specialize in radars, missiles, sensors, unmanned flight, lasers and information systems. Our competitors are Boeing, Northrop Grumman, Lockeed Martin and General Dynamics. Entry into this field is highly regulated and deemed impossible for new upstarts. (Klatt 2013) Porter describes complementary products and services as one of the factors not forces (Porter 2008) and in 2013 the United States aerospace industry is more like “Competimates”. The competimate is winner of a contract bid but finds itself incapable of performing the task and will seek out the sub-contractor as a partner. Both firms are able to capitalize on their strengths and minimize the weaknesses creating an environment of win-win. Raytheon does not make the platform product i.e. F-15 Strike Eagle, F-18 Hornet, B-2 Bomber, or F-16 RACR yet we do make the radars and antennas that help make these planes the most technologically advanced weapons systems by twenty to thirty years. Our F-15/F-18
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