Business-level Strategy Lockheed Martin
After analyzing the business-level strategy of Lockheed Martin, I believe the strategy is appropriate to offset forces in the industry. The purpose of business-level strategy is to create differences between the firm’s position and its competitors, which is exactly what Lockheed Martin aims to do. Lockheed Martin uses a differentiation strategy in combination with the cost leadership strategy to achieve growth objectives.
A cost leadership strategy involves gaining a competitive advantage by lowering the cost. The company uses a cost leadership strategy to preserve market leadership through efficient value chain management (Lockheed Martin, 2). This strategy allows Lockheed Martin to expand its market share by targeting the middle class, which is the largest proportion of most countries’ consumer market mix. Besides charging low prices by lowering production costs and maximizing supply chain efficiency, Lockheed Martin frequently offers discounts and coupons to achieve sales targets and handle the competitive pressure from its closest rival.
Adopting a differentiation strategy allows Lockheed Martin to expand its customer base by emphasizing unique product features. The company differentiates its products by embedding innovation and addressing the consumer’s growing health concerns. Heavy investment in marketing, advertisement, and celebrity endorsement differentiates Lockheed Martin from other brands. Another vital part of Lockheed Martin’s future success in their business-level differentiation strategy is expansion using the differentiation strategy. For instance, Lockheed Martin’s acquisition of Sikorsky is in line with the differentiation strategy that will help grow the business (Forbes, 1). It extends Lockheed Martin’s broad portfolio in aerospace and defense products and technologies and its offerings internationally with a robust line of helicopter solutions for its global customers (1).
I believe Lockheed Martin needs to continue using a differentiation strategy because there are so many different branches of the company. They need to focus on extensive research and development to ensure they are coming up with new and innovative products to keep them in line or ahead of the competition. Technology is changing and growing rapidly, and it is important to be one step ahead of the trends if Lockheed Martin wants to stay afloat.
2017. Lockheed Martin: The Sikorsky Acquisition One Year On. https://www.forbes.com/sites/greatspeculations/2017/02/01/lockheed-martin-the- sikorsky-acquisition-one-year-on/?sh=2219d3934bd3.
Lockheed 2016. Lockheed Martin CEO Discusses Growth Strategy At Annual Media Day. https://news.lockheedmartin.com/2016-03-15-Lockheed-Martin-CEO- Discusses-Growth-Strategy-At-Annual-Media-Day.
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Week 5 Discussion
Post-response Guidelines: (Respond to the following.)
Evaluate the business-level strategy of either Starbucks or Lockheed Martin to determine whether you believe the strategy is appropriate to offset forces in the industry. Provide specific examples to support your response.
Make recommendations for improving this strategy and describe any challenges you foresee in executing those recommendations. Provide specific examples to support your response.
250 Word Minimum
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