Space X Case Analysis Essay
Introduction
The case surrounds the challenge facing Space X CEO Elon Musk as he contemplates the possibility of colonizing Mars, after having founded SpaceX in 2002 with proceeds from selling PayPal to eBay. The company has already achieved multiple U.S. government space launch contracts to cover costs and push technology development, and has a feasible approach embodied in the design of reusable rocket and capsule space launch components. However, the path ahead is unclear, and Musk will need to consider several other factors before proceeding. This essay will evaluate the space launch industry’s competitive forces using Porter’s Five Forces, analyse the impact of value chain decisions for United Launch Alliance (ULA) and Space X, compare the competitive position of established and newer space launch competitors, use the PESTEL analysis to identify general environmental trends impacting space launch, and explain how experience from increased launches can help SpaceX achieve a low cost strategy.
Analysis of space launch industry’s competitive forces using Porter’s Five Forces
Porter’s Five Forces will be used to analyse the competitive forces in the space industry.
Foremost, in terms of the threat of new entrants, the threat is moderate for SpaceX. The space industry requires high start up costs in the form of large land plot acquisitions, facility construction, technical investments and a highly skilled workforce, XXX of which XXXX time XXX resources to build up XXX cannot XX XXXX overnight. Hence, SpaceX XX at an advantage XXXXX the XXXXXXX XXXXXX XXXX Elon XXXX’s XXXXXX days. XXXXXXXXXXX, XXX XXXXXXXX provides XXX largest XXXXXX, XXX XXXXXXXX of long-term XXXXXXXXX between industry operators XXX Department of XXXXXXX XXXXXXXXX XXXXXXX key, which XXXXXX XXXXXXXXX to dominate in. (XXXXXXXXX, XXXX)
Finally, XXXXX launch companies XXXX be required XX XXXXXX with XXXXXXXXX safety XXX regulatory XXXXXXXXXXXX XXXXX XXX entrants typically struggle XXXX. XXXXXXX, the growth of XXXXXXX competitors, XX XXX case demonstrates, shows that there XX a significant threat of XXX XXXXXXXX.
Secondly, in terms of XXXXXX of substitutes, this XX low. This is XXXXXXX there XXX XXXXXXX XXXXXXXXXXXX to XXXXX XXXXXXXX XXX XXX XXXXX of XXXXX launch technologies XXX fairly XXXXXXXXXXXXXX, without significant XXXXXXX. XXXXXXXXXXX, the XXXXXXX nature XX the space launch industry suggests that it would be XXXXXXXXX for copycats XX quickly XXXXX XX XXXXXXXX technologies XXX XXXX XXXXXX’s XXXXX. However, SpaceX XXX XXXX an increasing XXXXXX XX substitutes from Virgin XXXXXXXX’s hybrid solutions, and XXXXXXXXXXXX XXXX XX high endurance XXXXXX, high XXXXXXXX XXXXXXXX, towers and cables and XXXXX elevators XXX satellite XXXXXXXX.
XXXXXXX, in terms XX bargaining XXXXX XX consumers, consumers currently XXXX XX XXXXXXXXXX XXXXX XX XXXXX are XX XXXXXXXXXXXX XXXXXX products yet. XXXXXXX, buyer XXXXX XXXXXXXXXXX will begin XX XXXX as cuts XX XXXXXXXXXX XXXXXXX of space programmes XXX enacted. SpaceX’s strong XXXXX equity XXX XXXXXX XXXXXXXXXX XXXX reduces the XXXXXXXXXX XXXXX XX XXXXXXXXX.
XXXXXXXX, in terms of XXX XXXXXXXXXX power of XXXXXXXXX, XXXXXXXXX XXXXXXXXX in XXX areas of XXXXXXXXXXX, computers, composite XXXXXXXXX XXX XXXXXX XXXXX are globalized and XXXXXXX XXXXXXXXX. XXXXX, XXXXXXXX bargaining power XX low, although it can XX XXXXXX high for XXXXXXXXXXXXXX, XXXX-value XXX XXXXXXXXX engineered XXXXXXXXXX.
XXXXXXX, in terms XX XXXXXXXXXXX, the XXXXX launch XXXXXXXX XXXXXXXXX to XXXX a XXXXXXXXXX XXX XXXXX of XXXXXXXXXXX XXXXXXX due to XXX XXXXXXXXX XX key players such XX United XXXXXX Alliance (ULA) and XXXXXX, XXXX deeply XXXXXXXXXXXXXX technological XXXXXXXXXXXX, XXXX initial investment, large XXXXXXX XXX a clear government XXXXXXXXXX toward XXXXXXXXXX operators.
XXXXX on XXX above Five XXXXXX analysis, XXXXXX XXX XX XXXX to be positioned XXX XXXX-term XXXXXXXXXXXXX XX it occupies a relatively XXXXXXXXXX position XXXXXX XXX XXXXXXXX.
Analysis of the impact of XXXXX chain decisions XXX United XXXXXX XXXXXXXX (ULA) and XXXXX X
Value XXXXX decisions XXX XXX and Space X will be important in determining XXXXX XXXXXXXXXXX advantage. XX XXXXXXXXXX, XX a XXXXX XXXXXXX XXXXXXX Boeing and XXXXXXXX Martin, XXX is XXXXXXXXXX integrated, although it XXXXXXX from XXXX costs which led to a XXXXXXXXXXXXX of XXX. SpaceX, XX XXX XXXXX hand, is much XXXX agile and nimble, XXX XXXX not XXXX as deep a XXXXXXXX integration as XXXX enjoyed XX ULA. Weighing XXXXXXX the XXX, it XX clear that XXX has a strong competitive XXXXXXXXX for XXX, XX it has XXXX XXXXXXXXXX and XXXXXXXXX in the XXXXX launch sector from XXX XXXXXX aerospace XXXXXXXXX in XXXXXX and XXXXXXXX XXXXXX.
XXXXXXXXXX of XXX XXXXXXXXXXX XXXXXXXX XX XXXXXXXXXXX and newer space launch competitors
XXXXXXXXX XXX competitive XXXXXXXX of XXXXXXXXXXX space launch groups such XX XXX XXX Arianespace XXXX newer XXXXX XXXXXX XXXXXXXXXXX, it is XXXXX XXXX XXXXX are XXX strategic groups. Foremost, XXXXX XX the group XX older legacy space XXXXXXXXXX companies XXXXX XXXX XXXXX XXXXXXXX from XXXXXXXXX and XXXXXXX XXXXXX (often XXXX government financing), XXXX XX XXXXXXXXXXXXX XXXXXX XXXXXXXX, United XXXXXX XXXXXXXX, XXXXXXX XXX XXX Arianespace. XXXXXXXX, XXXXX is a XXXXX XX XXXXXXX, more agile XXX XXXXXX XXXXXXXX XXXX XX XXXXXX, XXXX XXXXXX, XXXXXX XXXXXXXX and Rocket Lab, which spun XXX XXXX founders from less XXXXXXX businesses, and XXXXX XXXXX more aggressive XXXXXXXXXX approaches, XXXX XX reusable XXX XXXXXXX rockets. (XXXXXX XX XX, 2018)
PESTEL XXXXXXXX
The PESTEL analysis will XX used to identify XXX general environmental XXXXXX impacting XXXXX XXXXXX. XXXXXXXXX, economic trends XXXXXX by XXX economic feasibility and viability of SpaceX’s commercial XXXXX launches XXXX XXXXX most XXXXXXXX XX XXXXXX’s strategy.
To better understand the XXXXXXXXXXX environment XX SpaceX, it XX necessary to XXXXXXX a XXXXXX analysis. In XXXXX XX political XXX XXXXX factors, XXX dynamic XXXXXX of the XXXXXXXX government, XXXX XXXXXXXXXXX Democrat and Republican administrations, XXX pose a XXXXXXXXX in terms XX XXX provision of a XXXXXX XXXXXXXXXX XXX XXXXXXX environment from XXX state XXX XXXXXX’s endeavors. XX addition, frameworks XXX XXXXXXXXXXX and XXXXXX rights in XXXXX XXX XXXXX XXXXX XXXXXXX in a XXXXXXXXXXXX XXX international XXXXX, XXXXX poses additional business XXXXX. XXXXXXX, SpaceX’s XXXXXXXXXXX XXX XXXXXXXXX XXX XXXXXXXX political XXX regulatory XXXXXXXX on SpaceX.
XX XXXXX XX economic factors, globalization XXX XXX XXXXXXXXXXXXXXXXXXXX XX supply XXXXXX XXXXXX XXXXX SpaceX XX XXXXXX for XXX inputs XXX XXX XXXXXXXX XXXXXX and XXXXXXX XXXXX XXXXXX components more affordably. XXXXXXX, factors XXXX as XXX X.S.-China XXXXX XXX XXX XXXXXXXXXXX XXXXXX supply XXXXXX, pushing XX costs XXX SpaceX. Furthermore, XXXXXX relies XX an availability XX a XXXXXXX, XXXXXXXX workforce in XXX form of aerospace engineers, XXXXXXXXXX XXX XXXXXXXXXXX, which XXXXXXX XX XXX XXXXXXXX labor market.
In XXXXX of XXXXXX factors, XXX XXXXXXXX public XX XXXXXXXX XXXX accepting XX space XXXXXX and commercial XXXXX flight. This will XXXX into XXXXXX’s XXXXX, as it XXXX XXXXXXXX to XXXX demand for space XXXXXX.
In XXXXX of technological factors, XXXXXX will benefit from XXX rapid pace XX development of space technologies, XXXXX will XXXXX the cost and XXXXXXXX XXX operational XXXXXXX of SpaceX’s XXXXXXXX. (XXXXX, 2018) For XXXXXXX, Exhibit X XX XXXXXXXXXX XXXXX XXXXXXX shows how Virgin Galactic’s XXXXXXXX operates XXXX XX% reliability, XXXXX XXX XXXXXXX Blue XXXXXX XXXXXXXX XXXX XXX% reliability, XXXXX on XXXXX previous XXXXXX track XXXXXXX. XXXXXXX, XXXXXXXXXXXXX XXXXXXX XXXX as space debris, which may XXXXXXXXXXXXX XXXXXX SpaceX equipment in XXX XXXXX, XXX human XXXXXXXXXX XX XXX physiological XXXXXXX of space, may continue XX be XXXXXXXXXXX.
XXXXXXX, in XXXXX XX environmental factors, SpaceX will need to continue XX find a way XX XXXXXXX its equipment and XXXXXXXX in a XXXXXXXXXXX manner, XXX to XXXX XXXX the XXXXXX XX environmental space XXXXXX. (Jindal et XX, 2018) This XXXXX in light XX XXXXXXXXXX XXXXXX XXXXXXXX XX XXXXXX the XXXXXX of XXXXXXX XXXXXX and XXXXXX XXXXXXXXX XXXXXXXXXXXXX. (Jindal XX XX, 2018)
Experience as a valuable asset XX help SpaceX XXXXXXX a low cost XXXXXXXX
As SpaceX XXXXX more XXXXXXXXXX XXXX XXXXXXXXX XXXXXXXX, it XXXX be able XX lower XXXXX XXX XXXXXXX a low cost XXXXXXXX. This is XXX XXXX XXX a XXXXXX of reasons. XXXXXXXX, XXXXXX XXXX become XXXX XXXXXXXXXXX and learn from XXX XXXXXXXX of XXX XXXXXX iterations. Secondly, XXXXXX will be able to XXXXXX out its fixed XXXXX XX XXXXXX XXXXXX technology development over a XXXXX production XXXX, reducing XXX XXX XXXX XXXXX. (XXXXXXXXX, 2013)
Finally, SpaceX will XX able XX XXX data XXXXXXXXX XX draw XXXXXXXX from XXX previous launches to optimise and improve its XXXXXX launches. (XXXXXXXXX, XXXX)
Conclusion
XXXXXX XXXX likely play a large role in the XXXXX XXXXXX XXXXXXXX in XXX future, XXX XXXX essay XXX analysed SpaceX’s XXXXXXXXX XXXXXXXXXXXXXXX through an analysis XX Porter’s Five Forces, the XXXXX XXXXX, PESTLE XXX XXX competitive XXXXXXXXX.
XXXXXXXXXX
Carter, X., & Pezeshkan, A. (XXXX, XXXX). The XX Space Launch Industry: XXXXXXXXX Evolution XX Entrepreneurial Context. XXXXXXXXX XX Management Proceedings (Vol. 2018, No. 1, p. 10401). XXXXXXXXXX Manor, XX 10510: Academy of Management.
XXXXX, J. (XXXX). SpaceX's XXXXX-Internet woes: XXXXXXX technical XXXXXXXX, XXX company plans XX launch XXX first of nearly XX,XXX XXXXXXXXXX in 2019.IEEE Spectrum,XX(1), 50-XX.
Jindal, X., Bharti, M. K., & XXXXXX, S. (XXXX). XXXXXXXXXXXXX XXXXXXXXXXXX of Various XXXXXXXXX of XXXXXX Launch Operations-A Review.International Journal of Research,X(XX), 2197-XXXX.
XXXXX, X. (XXXX, July). XXX recent large XXXXXXXXX in space launch cost. XXXX International XXXXXXXXXX on XXXXXXXXXXXXX XXXXXXX.
XXXXXXXXX, E. (2013).XXXXXX: XXXXXX commercial XXXXXXXXXXX a XXXXXXX. XXXXXXXX XXXXXXX &XXX; XXXXXXXX Media.
Vozoff, M., & Couluris, X. (XXXX, XXXXXXXXX). SpaceX products-XXXXXXXXX the use of space. InXXXX XXXXX 2008 conference & XXXXXXXXXX (p. XXXX).
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