SWOT ANALYSIS ON General Dynamics Corporation

[abhishreshthaa]

General Dynamics Corporation is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world.[3] The company has changed markedly in the post-Cold War era of defense consolidation. The company has four main business segments: Marine Systems, Combat Systems, Information Systems and Technology, and Aerospace. The company's former Fort Worth Division manufactured the F-16 Fighting Falcon, the most-produced Western jet fighter, but that subsidiary was sold to Lockheed in 1993. GD reentered the airframe business in 1999 with their purchase of Gulfstream Aerospace.

Strengths

* Solid product portfolio (aeronautics, electronic & space systems, integrated solutions, others)
* Strong relationship with the US government
* High asset turnover
* Strong financial performance

Weaknesses

* Close to 85% of revenues come from one source: US government
* Softness in aeronautics division
* Revenue per employee significantly lower compared to Boeing, Rolls Royce
* Low price approach achieved at the expense of employee salaries and high turnover

Opportunities

* Order backlog simply needs to be fulfilled
* Recent acquisitions (i.e.,. Aculight Corporation)
* Rising defense spending in the US and worldwide

Threats

* Rising commodity prices
* Government contracts & future regulation
* Potential decreases in US government spending
* Employee retention & availability

 

[jitendra05]

General Dynamics Corporation is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world.[3] The company has changed markedly in the post-Cold War era of defense consolidation. The company has four main business segments: Marine Systems, Combat Systems, Information Systems and Technology, and Aerospace. The company's former Fort Worth Division manufactured the F-16 Fighting Falcon, the most-produced Western jet fighter, but that subsidiary was sold to Lockheed in 1993. GD reentered the airframe business in 1999 with their purchase of Gulfstream Aerospace.

Strengths

* Solid product portfolio (aeronautics, electronic & space systems, integrated solutions, others)
* Strong relationship with the US government
* High asset turnover
* Strong financial performance

Weaknesses

* Close to 85% of revenues come from one source: US government
* Softness in aeronautics division
* Revenue per employee significantly lower compared to Boeing, Rolls Royce
* Low price approach achieved at the expense of employee salaries and high turnover

Opportunities

* Order backlog simply needs to be fulfilled
* Recent acquisitions (i.e.,. Aculight Corporation)
* Rising defense spending in the US and worldwide

Threats

* Rising commodity prices
* Government contracts & future regulation
* Potential decreases in US government spending
* Employee retention & availability

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