Gmd

EXTERNAL ENVIRONMENTAL ANALYSIS

The firm’s main competitors are

• General dynamics, more specifically, its subsidiary General Dynamics Land Systems

• United Defence

GENERAL DYNAMICS

MISSION

To provide the army, with the best combat systems, marine, aerospace, and information systems and technology. To be a leading defense company in the industry.

GDSL aim to provide track and wheeled armoured vehicles, as well as amphibious combat vehicles for the U.S Army, the US corps, and international allies.

CAPABILITIES

RESEARCH AND DEVELOPMENT

GDLS has a proven record in engineering research, development and technological innovation in the defence industry. GDLS’ wide range of technical capabilities include precision machining, experience with steel and aluminium and special armour, product fabrication, assembly, technical assistance, contract logistics support services, systems integration.

Having recently acquired CDC, GD enhanced its technologies in MGS. As a result, GMD sources its MGS for its light armoured vehicles from GD.

MANAGEMENT

GDLS was able to enhance its technical capabilities via the acquisition of various companies. AV Technology and Robotics Systems Technology are two such acquired companies.

MANUFACTURING

GDLS operated the United States’ only main battle tank production facility. It was able to deliver more than 8500 Abrams main battle tanks o the U.S Army as well as to its allies.

HUMAN RESOURCES

GDLS has a superior technical team, comprising of some 3500 employees. The knowledge base that the company possesses is possibly its most critical asset.

CORE COMPETENCIES

The reputation of the GDLS is a major intangible resource. Its product is the Abrams SEP main battle tank internationally, which is renowned as the world’s finest battle tank. Its manufacturing capabilities are also a major contributor to its competitive edge. GDLS operated the United State’s only main battle tank production facility.

COMPETITIVE RESPONSE PROFILE

As an established supplier to the U.S army, GDLS has significant political backing and trust, and as such is confident that they would have a good chance of winning any contract.

Like GMD, GDLS would have taken into consideration the fact that the two companies did attempt to go into a joint venture previously. This may have put the two companies in amicable relations with one another. By itself, GD does not possess the capability to produce the advanced 8x8 models. The U.S government requires a safe yet lightweight chassis, one which GDLS has yet to develop. The inferiority of their chassis technology would coerce GDLS into forming a joint venture. It is important however to analyse which firm they would go into a joint venture into.

On the other hand, GDLS is quite advanced in terms of weapons systems. Its mobile gun systems (MDS) were even further advanced by the acquisition of CDC.

Judging from VDC’s past business decisions, it is apparent that VDC was making moves to further enhance its technologies through joint partnerships and acquisitions. Their motive behind making joint ventures in the past, seems to have been in order to advance their technologies, in order to become the leader in that specific field. As such, GMD must be cautious of the fact that GDLS may enter into a joint venture with them solely for the purpose of advancing their technologies because they are aware that they are falling behind in the leader board.

The business level strategy of GDLS follows a particular trend. Firstly, they form joint ventures with certain companies, in an effort to advance their technological capabilities. Subsequent to that, they also began to acquire their suppliers in order to further increase their technical capability. To this end, this company has continually increased its competitive advantage, and is emerging as one of the leaders in the armoured vehicle market.

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UNITED DEFENCE

MISSION

To be the sole-source prime contractor and a leader in designing, developing and producing combat vehicles, fire support equipment, combat support vehicles, weapons delivery systems and amphibious assault vehicles.

They provide nimble mobility, lethal firepower, and superior protection that gave it a fighting edge in the changing battlefield of the post- Cold War era.

CAPABILITIES

HUMAN RESOURCES

Its board of directors included former secretary of Defence Frank Carlucci and former chairman of the Joint Cheifs of staff John M. Shalikashvili. This meant that their governing body had quite a strong relationship with the government and as such, the government accounted for over 80% of the company’s sales.

MANUFACTURING

For the past 60 years, United Defence had produced more than 100,000 combat vehicles and 100,000 weapon systems that the U.S department of defence and its international allies were using.

It produced the U.S army’s premiere armoured infantry vehicle, the Bradley fighting vehicle family.

RESEARCH AND DEVELOPMENT

The Bradley fighting vehicle was continually improved to meet and exceed the ever-changing requirements of the modern battlefield.

These Bradley vehicles were more adept at performing in the post cold war era. These vehicles were equipped with lethal firepower, superior protection and well as unparalleled mobility, which are somewhat lacking in GD’s Abrams.

CORE COMPETENCIES

United Defence’s Human resources are a major contributor to the competitive advantage which it has acquired. The U.S government, having been responsible for 80% of United Defence’s sales, has resulted in over 100,000 combat vehicle as well as 100,000 weapon systems being produced over a 60 year period. This is clearly as a result of its political swagger.

COMPETITIVE RESPONSE PROFILE

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