Unlocking Success: The Business Development Strategies of Lockheed Martin
Lockheed Martin is a leader in aerospace, defense, security, and technology, employing over 110,000 people worldwide. It is known for its innovative products and services, which are designed to meet the needs of its diverse customers. However, it is not just its exceptional products and services that contribute to the success of the company. Its business development strategies are equally important.
Strategy #1: Invest in Research and Development
Lockheed Martin invests heavily in research and development (R&D) to drive innovation and stay ahead of its competition. It spends approximately $1.5 billion a year on R&D, which is around 3% of its revenue. This investment allows the company to improve its products and services continuously, meet changing customer needs and win new contracts.
One example of this is the F-35 Joint Strike Fighter, a fifth-generation fighter jet, which is a result of Lockheed Martin’s significant investment in R&D. The aircraft is now in service with several air forces around the world and is considered one of the most advanced fighter jets ever built.
Strategy #2: Focus on Diversification
Lockheed Martin has diversified its business to reduce its dependence on any one sector or customer. It operates in four business segments: Aeronautics, Rotary and Mission Systems, Space Systems, and Missiles and Fire Control. Each of these segments serves a different market and has a diverse set of customers, making the company less vulnerable to market fluctuations and changes in customer demands.
For example, the Missiles and Fire Control segment is responsible for producing a wide range of products, including missiles, fire control systems, and sensors. These products are sold not only to the US Government but also to other governments worldwide, providing the company with an additional stream of revenue.
Strategy #3: Pursue Strategic Partnerships and Acquisitions
Lockheed Martin has established strategic partnerships with other companies, both large and small, to leverage their expertise and capabilities. These partnerships allow the company to win new contracts, gain access to new technologies and markets, and strengthen its position in existing ones.
For example, Lockheed Martin entered into a partnership with Boeing to bid for the US Air Force’s new Long-Range Strike Bomber contract. The partnership leveraged Boeing’s extensive expertise in designing and constructing aircraft, as well as Lockheed Martin’s experience in building bombers and advanced systems.
In addition to partnerships, Lockheed Martin has also acquired companies that complement its existing businesses. These acquisitions have allowed the company to expand its capabilities, enter new markets, and enhance its position in existing ones. One such example is the acquisition of Sikorsky Aircraft, a helicopter manufacturer, which strengthened Lockheed Martin’s position in the aerospace industry.
Strategy #4: Prioritizing Employee Retention and Development
Lockheed Martin recognizes the importance of its employees in driving the success of the company. It has a strong culture that prioritizes employee retention and development. The company offers a comprehensive benefits package, including healthcare plans, retirement savings plans, and tuition reimbursement, to attract and retain top talent.
Moreover, the company provides its employees with opportunities for growth and development through training programs, mentoring, and leadership development. This approach allows the company to retain its employees, increase their productivity, and develop their skills to meet the changing needs of the business.
Conclusion
Lockheed Martin’s business development strategies are a key factor in its success. The company’s investments in research and development, diversification, partnerships and acquisitions, and employee retention and development have helped it to stay ahead of its competition. These strategies have allowed the company to innovate, expand its capabilities, and meet the changing needs of its customers. As a result, Lockheed Martin is one of the most respected and successful companies in its industry, and its strategies are worth emulating.
