Analysis of Seven Staircases to Growth
1. Relying on the Staircases to growth paper, analyze each of the seven staircases. Which of the seven staircases is your organization using to grow? Which ones would you recommend, why? Does your organization have enough market power so that such growth strategies may help to create value?
The distinctive seven staircases of growth strategies have been adopted by many successful companies, such as Walt Disney, Gillette, Johnson & Johnson, Home Depot, and many more. While one single strategy may not yield a significant growth effect, implementing them concurrently and consecutively can provide a powerful roadmap for near-term and long-term growth (Baghai, Coley, & White, 1996). Below is an analysis of …show more content…
The principal U.S. government customer includes the DoD, U.S. Intelligence Community agencies, NASA, and the FAA (“Raytheon’s 10-K”, 2016). As part of Raytheon’s strategy, “sell more of the current product range to existing customers” is achieved through winning the contract recompetes. Most government contracts expire and recompete every five years, although some contracts may have a longer period of performance. The importance of winning the recompetes is Raytheon’s primary strategy as it has the highest competitive advantage with the existing customer intimacy, system knowledge, and understanding of the customer’s strategic direction from the execution of the current contract. In addition to winning the recompetes, the program management team can also work with the customer to identify problems and needs on the existing contracts to help the customer procure additional products and services through the modifications to the existing contracts, such as extending the period of performance and engineering change proposals …show more content…
government. During the bidding process, innovation of the value-delivery system is difficult to achieve as the defense contract bidders have to follow specific instructions in order to qualify for the evaluation and the contract award. Violation or deviation from the specified requirements can disqualify them from the bid contract. In some cases, a penalty could prohibit a company from future contract bidding activities. During the contract execution phase, all requirements must be met and delivered in accordance with the contract document. Due to these strict regulations, Raytheon has limited ability to change and innovate its value-delivery system.
5. Improving industry structure
For this staircase of growth strategy, Raytheon routinely seeks opportunities to improve its competitive position through investments, acquisitions, joint venture, teaming, and other collaborative arrangements (“Raytheon’s 10-K”, 2016). The most recent effort was a formation of Forcepoint, which is a joint venture that focuses on cybersecurity capabilities, solutions, and products. With this joint venture, Raytheon amplifies its cybersecurity portfolio and becomes one of the leading cybersecurity companies in the A&D industry (Morgan, 2016).
6. Geographical
1. Relying on the Staircases to growth paper, analyze each of the seven staircases. Which of the seven staircases is your organization using to grow? Which ones would you recommend, why? Does your organization have enough market power so that such growth strategies may help to create value?
The distinctive seven staircases of growth strategies have been adopted by many successful companies, such as Walt Disney, Gillette, Johnson & Johnson, Home Depot, and many more. While one single strategy may not yield a significant growth effect, implementing them concurrently and consecutively can provide a powerful roadmap for near-term and long-term growth (Baghai, Coley, & White, 1996). Below is an analysis of …show more content…
The principal U.S. government customer includes the DoD, U.S. Intelligence Community agencies, NASA, and the FAA (“Raytheon’s 10-K”, 2016). As part of Raytheon’s strategy, “sell more of the current product range to existing customers” is achieved through winning the contract recompetes. Most government contracts expire and recompete every five years, although some contracts may have a longer period of performance. The importance of winning the recompetes is Raytheon’s primary strategy as it has the highest competitive advantage with the existing customer intimacy, system knowledge, and understanding of the customer’s strategic direction from the execution of the current contract. In addition to winning the recompetes, the program management team can also work with the customer to identify problems and needs on the existing contracts to help the customer procure additional products and services through the modifications to the existing contracts, such as extending the period of performance and engineering change proposals …show more content…
government. During the bidding process, innovation of the value-delivery system is difficult to achieve as the defense contract bidders have to follow specific instructions in order to qualify for the evaluation and the contract award. Violation or deviation from the specified requirements can disqualify them from the bid contract. In some cases, a penalty could prohibit a company from future contract bidding activities. During the contract execution phase, all requirements must be met and delivered in accordance with the contract document. Due to these strict regulations, Raytheon has limited ability to change and innovate its value-delivery system.
5. Improving industry structure
For this staircase of growth strategy, Raytheon routinely seeks opportunities to improve its competitive position through investments, acquisitions, joint venture, teaming, and other collaborative arrangements (“Raytheon’s 10-K”, 2016). The most recent effort was a formation of Forcepoint, which is a joint venture that focuses on cybersecurity capabilities, solutions, and products. With this joint venture, Raytheon amplifies its cybersecurity portfolio and becomes one of the leading cybersecurity companies in the A&D industry (Morgan, 2016).
6. Geographical