Introduction
Since the company’s founding in 1912, Lockheed Martin has grown into the largest defense contractor in the United States. In this post, we’ll look at Lockheed Martin’s business model, value proposition, and revenue streams. We’ll also explore their key activities and core competencies to better understand how they’ve managed more than a century of success.
Lockheed Martin Corporation History
- Lockheed Martin was founded in 1912 by Allan Lockheed and his wife, Margaret. The company was originally called the Lockheed Aircraft Company and began building aircraft for the United States military.
- In 1984, a merger between Martin Marietta (also founded by Allan Lockheed) and Sikorsky created a new company known as Lockheed Martin Corporation (LMC). Today LMC is considered one of the largest defense contractors in the world with over 100,000 employees worldwide and $55 billion in annual revenue.
- The headquarters for this international organization are located at 4800 North Bethesda Boulevard in Bethesda Maryland just outside of Washington DC.
Lockheed Martin Business Model
Lockheed Martin is a global security and aerospace company. The company operates in four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, Space Systems.
An aerospace company is an organization that designs, builds and sells airplanes or other flying machines. Lockheed Martin is a Fortune 100 company with more than $50 billion in annual revenue as of 2017. It has about 97,000 employees worldwide working at the following locations: Bethesda (Maryland), Colorado Springs (Colorado), Dallas/Fort Worth Metroplex Area (Texas) and Sunnyvale/Santa Clara Valley (California).
The Lockheed Martin Corporation was founded by aircraft designer Clarence “Kelly” Johnson in 1925 as a holding company for Du Pont Fabrique Nationale (DFPN). In 1928 DFPN became part of the new United Aircraft & Transport Corp where it remained until 1933 when it was reorganized into Messerschmitt-Bölkow-Blohm GmbH & Co., KG after being acquired by Heinrich Focke who had started building planes in Germany before WWI but could not continue after hostilities ended because his factories were located near those belonging to Ludwig Bölkow who had gone into partnership with him shortly before hostilities began — implying that he would help Focke out if necessary; after WWII ended they reunited under one name which eventually became known as MBB GmbH until 1978 when British Aerospace bought out MBB’s shares making them take over control completely; BAe still manufactures military aircraft today under its own name while also manufacturing many components for civilian aircraft companies like Airbus
Lockheed Martin Revenue Streams
Lockheed Martin Corporation is a global security and aerospace company that employs about 100,000 people worldwide. The company maintains major facilities in Georgia, Alabama, Colorado and Texas. Lockheed Martin delivers a broad range of products and services for military, government and commercial customers including strategic missiles; combat planes; helicopters; satellites; advanced information systems; missile defense systems; space launch systems; scientific research instruments; nuclear reactors for submarines – just to name a few.
Lockheed Martin Value Proposition
Lockheed Martin’s value proposition is to provide innovative and affordable solutions to customers. The company provides the most advanced technology at the lowest cost, which allows it to be a leader in their industry. It also has a strong focus on integrating systems and services for defense, aerospace and homeland security customers.
Lockheed Martin Competitive Advantages
- Lockheed Martin has a strong reputation for innovation, quality and reliability.
- Lockheed Martin has a strong global presence.
- Lockheed Martin has a strong R&D pipeline.
- Lockheed Martin has a strong supply chain.
- Lockheed Martin has a strong reputation for customer service
Lockheed Martin Key Activities
Lockheed Martin is a global security and aerospace company that employs approximately 97,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
Lockheed Martin’s major business segments are Aeronautics (including Sikorsky), Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), Space Systems. The Corporation’s largest program is the F-35 Lightning II fighter airplane; its other significant programs include NASA’s Orion space exploration vehicle & Space Launch System rocket; Lockheed Martin also operates two United States Department of Defense laboratories: the Missile Defense Agency’s Center for Excellence for Command & Control Intelligence Integration/Analysis; And its commercial businesses include Communications Networks & Electronic Solutions (CNES)
Lockheed Martin Customer Relationships
Lockheed Martin has many customers, suppliers, competitors and partners. This is because they are a major defense contractor who supplies weapons systems to the US military.
Lockheed Martin Resources
Lockheed Martin’s resources are its employees, facilities, products and technology — including patents. The company also invests in research and development.
Lockheed Martin employees create these resources with their knowledge of aerospace engineering as well as other disciplines such as software development, information technology and systems integration.
Lockheed Martin Partnerships
Lockheed Martin partners with the US government in a number of ways. The company will often partner with the Department of Defense, who is responsible for the development and procurement of all major weapons systems for the US military. Lockheed Martin also has partnerships with foreign governments and companies, such as its $914 million deal to provide F-16 fighter jets to Taiwan.
Understand the business model of the largest defense contractor in the United States
As a global security and aerospace company, Lockheed Martin’s business model is to provide products and services that help maintain the nation’s defense. Its main focus is on the defense industry, but it also has other business units focused on information systems, space systems, technical solutions and mission support services.
In total, Lockheed Martin has more than 100 subsidiaries around the world. The company’s largest share holder (and thus its ultimate owner) is KKR & Co., L.P., which owns 26% of the company’s shares. Other major shareholders include BlackRock Inc., Capital Research Global Investors and Vanguard Group Inc.. Together these three own 21% of all outstanding shares in Lockheed Martin Corporation.[1]
Conclusion
The business model of Lockheed Martin is centered around the operation of its defense and security solutions. The company generates revenue from the sale of these products to the US Department of Defense, other international governments, and commercial customers.
The main value proposition that this company provides to its customers is in its defense technology solutions. These are often considered cutting edge and are typically sold as a contract to government agencies.
Lockheed Martin’s competitive advantages come mainly from its highly-specialized production capabilities and the brand equity associated with its name. The company has also been able to develop several partnerships with other firms in order to expand its technology portfolio and enter new markets. The Lockheed Martin business model allows for continuous growth through innovation while maintaining profitability despite fierce competition within this industry segment.
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