The Netherlands Air Market - Revenue Opportunities and Stakeholder Mapping

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Industry Challenges

People and Culture Challenges - The continuing force rationalisation and restructuring of the RNlDF creates the challenge of dealing with end-user stakeholders struggling with change. This makes the task of introducing innovative solutions (product and services) more difficult than in normal conditions.

Commercial Off-the-Shelf (COTS) Products - The increasing benefits of COTS products tempt the Government to cut down initial funding to develop a product prototype. In the future, companies would have to self-fund to develop prototypes. This factor could have a negative impact on companies with tight cash flows.

Consortium-/Partnership-focused Procurements - The MinDef is inclined towards participating in (and procuring from) product development consortiums, considering the potential for shared risk and technology benefits. This may limit the participants’ direct revenue from the Netherlands air market, although this creates new opportunities for smaller Tier II/III market participants to partner with global primes.

Defence Budget Cuts - Defence budget cuts present significant challenges for the defence industry. The impact of this would be witnessed at all levels across the value chain. In the future, organisations have to be cost efficient and adapt themselves to tighter budgets and changing procurement models.