General Dynamics Strategy

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A major developing strength of General Dynamics has been the acquisition of Gulfstream. This acquisition has led to General Dynamics becoming a major player within the aerospace industry. Gulfstream has developed thousands of aircrafts in charge of transporting customers from different destinations. This has allowed General Dynamics to grow their customer base, and give them different business options. The diversity of their product or services offered is another strength. With the emergence of Gulfstream, the company is no longer forced to sell defense based products only. Their customer portfolio has changed, and has given them a different avenue to sell products. The company being a publicly traded organization helps in terms of finances.…show more content…
Their connection with the U.S. government and military offers an exclusive contract for their business. For example, General Dynamics is one of the primary shipbuilders for the United States Navy. The Navy cannot function without ships, and have a constant demand for new ships or parts. This exclusive relationship with the U.S. government allows General Dynamics to maintain contracts with major government bodies. The income level is high based on the amount of well functioning ships required by the Navy. General Dynamics also supplies other services to different government stations and military branches. Such as information and technology to the Army, or combat systems such as tanks to the Marines. This connection with the government is unique and bolsters the company’s business in major fashion. General Dynamics has also emerged in the healthcare industry. General Dynamics is using their expertise in the research and technology field in order to further advance information on diseases and cures. General Dynamics has improved the ability of healthcare personnel to understand patient issues, and find better solutions to heal their…show more content…
Therefore, if the government cuts spending on their defense strategy or puts a halt to military expeditions this will negatively affect General Dynamics. The company will have a hard time selling tanks if the government agencies are not shopping. Another weakness is the lack of a market for General Dynamics. The company has attempted to find different markets such as healthcare, and aerospace by purchasing Gulfstream. However, unlike many companies they have a hard time selling products to the general public. Most people do not need a submarine or tank for the daily drive to work. This further illustrates the fact that the company will struggle without steady government spending in their defensive strategy. General Dynamics requires a high level staff in order to properly make products. Their products have to be top of the line, because a large majority of them are used for country defense. Making lackluster products could ruin the relationship with the government. Therefore, the company has to hire and train high level employees with expertise in the different areas of business they offer. For example, they need to hire top level engineers to make sure that combat and marine systems are producing well functioning machines. Or employ experienced doctors to conduct research in their health care department. The cost of hiring and properly training
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