BAE Systems is an information security, defense, and aerospace British multinational company. The merger of Marconi Electronic Systems and British Aerospace laid the foundation of BAE Systems in 1999. Today, we’ll discuss the SWOT analysis of BAE Systems; it outlines strengths and weaknesses; opportunities, and threat that the company has to face; as a business strategy analysis example company.
Products and services portfolio of BAE Systems
- Military equipment
- Typhoon fighter
- Unmanned aerial vehicle
- Fighter jet aircrafts
- M3/M2 Bradly fighting vehicle family
- M777 Howitzer
- Nucklear weepon
- SA80 assaulltt rifflle
Subsidiaries of BAE Systems
- Digital Intelligence BAE Systems
- Australia BAE Systems
- BAE Systems Inc.
Statistical facts and figures of BAE Systems
- Annual revenue – 23.078 billion British Pounds (2023)
- Net income – 1.940 billion British Pounds (2023)
- Employees – 93000
- Asset net worth – 32.064 billion British Pounds (2023)
Competitors of BAE Systems
- Northrop Gruman
- CASIC
- General Dynamics
- Meggitt
- Thales
- Lockheed Martin
- Embraer
- Boeing
The SWOT analysis of BAE Systems would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s BAE Systems SWOT analysis as a business strategy analysis example company as follows;
Strengths of BAE Systems
Some of the main internal strengths in the BAE Systems SWOT analysis example company as business strategy analysis are as follows;
Recognized Brand
BAE Systems has been operating its business in the aerospace and defense industry since 1979. The company has established a strong brand reputation in the global market due to its access to the most advanced technology and sophisticated information security system.
Large Portfolio
BAE Systems has established a very large product and service portfolio and it comprises of wide range of items. They’re like assault rifles, fighter jetts, armoured personnel carriers, M777 howitzer, Astute class submarines, and others. A wide range of product portfolios helps the company to offer different types of defense services to various countries worldwide.
Research & Development
BAE Systems invests billions of dollars in research and development. It helps the company to develop the most advanced and state-of-the-art technology before competitors. As a result, the defense and aerospace company could sustain its position in the market. Without having a competitive edge, the clients would choose other countries.
Strong Finances
According to an estimate, the network of company assets is over 32 billion British pounds with increasing market value and higher market share. The strong financial position of the aerospace and defense company to fund and finance various types of research and innovation projects.
Large Network
According to an estimate, BAE Systems has established a very large network, and the aerospace company is offering security and defense services to the countries like US, India, Australia, Saudi Arabia, and others. The larger customer market share and network amplify the company’s brand position in the defense industry.
Weaknesses of BAE Systems
Some of the main internal weaknesses in the BAE Systems SWOT analysis example company as business strategy analysis are as follows;
Lower Productivity
Many defense analysts have pointed out that the overall productivity of a company’s employees is very low relevant to its sheer size and scale of operations. They went on to say that the company could achieve the same level of productivity with few employees and a workforce.
No Employee Benefits
BAE Systems doesn’t provide retirement benefits to its employees. It raises a serious question on the long-term employee retention ratio of the company. The employees would always be looking for better opportunities that would offer them pension and retirement benefits.
Corruption Charges
There were reports and allegations of selling armed weepons to radical groups in various countries across the world. Of course, the company denies the charges and allegations. Such types of rumors and allegations are jeopardizing the company’s reputation in the long term.
Opportunities for BAE Systems
Some of the main available opportunities in the BAE Systems SWOT analysis example company as business strategy analysis are as follows;
Strategic Alliance
BAE Systems should acquire and partner up with other small defense companies of different companies. The joint venture allows the company to achieve a breakthrough in technology by sharing knowledge, professional expertise, and resources.
High Defense Spending
Different countries are investing a significant amount of capital resources in their defense system to make their country more secure. It further amplifies the growth of BAE Systems’ products and services; because it is the lead provider of defense services in the market.
Technological Development
Research and development and technological innovation are the keys to growth and productivity in almost every field. Businesses and companies can’t move forward by remaining stuck at one point. The company should keep developing the latest technology to gain a competitive edge in the market.
Threats to BAE Systems
Some of the main potential threats in the BAE Systems SWOT analysis example company as business strategy analysis are as follows;
Competition
The defense and aerospace market has become highly competitive with multiple competitors in the market. They pose a significant challenge to BAE Systems to maintain its market share and remain profitable in the presence of tough competition.
Government Regulations
The government regulations of various political governments are different when it comes to the defense policy and sale of arms. Any new government would directly impact the sales and the company’s productivity.
Morality Concern
Many critics agree on one point that defense companies are profiting at the cost of human lives. They are selling weepons to both parties, and the result is the loss of many innocent lives. However, they’re spreading awareness about the lockdown of all defense companies.
Conclusion: BAE Systems SWOT Analysis Example Company |SWOT Analysis of BAE Systems |Business Strategy Analysis
After an in-depth study of the swot analysis of BAE Systems; we have realized that BAE Systems is the world’s leading defense and aerospace company. If you are learning about BAE Systems SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
