Lockheed Martin Corporation – Company Strategy & Performance Analysis

Lockheed Martin is one of the largest defense companies that provides Aeronautics, Rotary and Mission Systems (RMS), Space Systems and Missiles and Fire Control (MFC) services to countries around the world. It provides aerospace and global security to its customers with its range of management, engineering, technical, scientific, logistics and information services for defense, civil and commercial applications.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading defence and security companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including: arms sales, order backlog, and contracts.

Key Highlights

The company’s diversified portfolio allows it negate the effect of dependencies:

Lockheed Martin has a diversified business portfolio and balanced revenue streams which allow Lockheed Martin to maintain its well diversified business operations. The company operates through four principal business segments: Aeronautics, Rotary and Mission Systems (RMS), Space Systems and Missiles and Fire Control (MFC). It maintains a balanced revenue stream through its business segments, negating the effect of dependencies. Lockheed Martin's Aeronautics business segment contributed 37.6% to its total revenue during 2016, followed by Rotary and Mission Systems (28.5%), Space Systems (19.9%), and Missiles and Fire Control (14.0%).

The company aims to enhance its profitability and long-term growth:

The company’s focus on collective global defense continues propogate the need for interoperability among partners and increased demand in Asia, Europe, and the Middle East for the company’s products. The F-35 fighter jet is the largest area of growth for the company, as international orders will of the F-35 are expected to account for 50% of all F-35 orders over the forecast period.

The company also expects strong growth in their Sikorsky rotary wing segment. Rotary-wing programs will move into their development and production phases over the forecast period.

The company is focusing on growing its international sales:

A key component of Lockheed Martin’s strategy is to grow international sales. To accomplish this growth, the company will continue to focus on strengthening relationships internationally through partnerships and joint technology ventures. The company is also undertaking various cost reduction initiatives to improve its profitability. For instance, in July 2016, the company extended its F-35 cost reduction initiative to save billions of dollars. These measures have resulted in an increase in its international sales, from US$8,614.0 million in 2014 to US$12,703.0 million in 2016.

Scope

– Company Snapshot – details key indicators and rankings of Lockheed Martin Corporation in terms of arms sales and Market Share in the company’s key markets.

– Company SWOT Analysis – outlines Lockheed Martin Corporation’ Strengths and Weaknesses, and weighs Opportunities and Threats facing the company.

– Growth Strategies – understand Lockheed Martin Corporation’ corporate goals and strategic initiatives and evaluate their outcomes.

– Company Performance and Competitive Landscape – analyse the company’s performance by business segment compared to other players across key markets on metrics such as arms sales.

– Key Developments – showcases Lockheed Martin Corporation’ significant recent corporate events, changes, or product initiatives.

Reasons to buy

- How does Lockheed Martin Corporation rank among defense and security service providers in Europe and globally?

- What are Lockheed Martin Corporation’ main growth strategies and how successful has the company been at implementing them?

- How has the company performed since 2013 in terms of arms sales, and order backlog?

- How has Lockheed Martin Corporation performed in comparison to competitors such as BAE Systems, The Boeing Company and Raytheon Company?

- What are Lockheed Martin Corporation’ strengths and weaknesses and what opportunities and threats does it face?

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