Essay Space-X Business Strategy

8282 Words May 30th, 2014 34 Pages
By: Asana Kusnadi

Mid Semester Examination

Table of Content

1. Background 2. Vision Statement 3. SWOT Analysis of SpaceX 4. Porter’s Five Forces Model 5. SpaceX TOWS Matrix 6. SpaceX Business Model 7. SpaceX Business Level Strategy 8. Conclusions

I. Background
SpaceX or Space Exploration Technologies Corporation is a space transport services company headquartered in Hawthorne, California. It was founded in 2002 by former PayPal entrepreneur and Tesla Motors CEO Elon Musk. SpaceX was founded with the goal of reducing space transportation costs and enabling the colonization of Mars. It has developed the Falcon 1 and Falcon 9 launch vehicles, both of which were designed from conception to
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CEO Elon Musk attributes the low cost of SpaceX’s Falcon 9 rocket to its modular design and engineering choices, as well as to SpaceX’s preference for making its own components rather than outsourcing. Reusable Falcon 9s could drop the price by an order of magnitude, sparking more space-based enterprise, which in turn would drop the cost of access to space still further through economies of scale. To date, SpaceX is saving the government billions by self-funding development costs rather than charging them back. Furthermore, according to company projections, their per-launch costs are projected to run 40 to 60 percent less than what's being charged today.[2]
SpaceX Chief Executive Officer Musk stated in June 2013 that he intends to hold off any potential IPO of SpaceX shares on the stock market until after the "Mars Colonial Transporter is flying regularly."
Currently, SpaceX is developing Falcon Heavy, which will be the world’s most powerful rocket. All the while, SpaceX continues to work toward one of its key goals—developing reusable rockets, a feat that will transform space exploration by delivering highly reliable vehicles at radically reduced costs.

Picture 1. Falcon 9 in SpaceX's hangar at Cape Canaveral
This paper will discuss the business model of SpaceX, and what business level strategy and how SpaceX uses its core competencies to gain competitive advantages in the spacecraft business.

II. Vision Statement

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