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Environmental Analysis
Sikorsky Aircraft: Environmental analysis
PEST analysis
Political
At present, the U.S. is still embroiled in numerous conflicts abroad, although it is pulling out of one of its major conflicts (Afghanistan) slowly. Regardless of whatever party assumes control over the White House in the future, there will still be strong demand for military vehicles, including Sikorsky Aircraft Black Hawks.
Economic
However, the shaky U.S. economy means that there will likely be less available funds for military spending on vehicles such as the Black Hawk helicopter, which forms the core of the Sikorsky brand
Social
Socially, once again the economy plays a role upon in terms of public perception of the company: citizens are more reticent about supporting military spending, when many Americans are dependent upon social service organizations for basic necessities and cutbacks are necessary 'across the board.'
Technological
Sikorsky places a premium upon innovation in its aircraft technology. However, it should be noted that in the future conventional aircrafts may become less important in warfare, as they may be replaced with 'drones' and other non-manned vehicles. Sikorsky is currently developing an unmanned version of its famous Black Hawk, but Eurocopter, Kaman Corp. Of Bloomfield and Boeing, Sikorsky's major competitors have already created unmanned helicopters."They [Sikorsky] are behind the curve a little bit, in that other manufacturer's around the world have been looking at unmanned versions of traditional helicopters for years" (Gershon 2010)
Porter's Five Forces
Threat of new entrants
Low, given the high start-up costs for this particular product.
Power of buyers
Strong because it is relatively limited -- Sikorsky has a limited number of venues in which to sell its aircrafts, and primarily does business with the government.
Power of suppliers
High, given the need for specific materials to create the company's high-tech products.
Threat of substitutes
Few substitutes exist for the type of technology sold by Sikorsky.
Rivalry
High, given that there are a number of other rival firms selling military technology to the government.
SWOT
Strengths
Famed for its Black Hawk helicopter and Sea Hawk
Long-standing reputation in the industry, having been founded in 1925
Continued need for the product to maintain the U.S. military
Weaknesses
Development of new forms of technology to wage warfare (such as drones) company is only beginning to explore
Competition from other manufacturers, such as Lockheed
Slow development of unmanned planes
Opportunities
Potential to collaborate with rivals, as it is currently doing with Lockheed….....