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General Dynamics Corp.: Company Strategy & Performance Analysis

General Dynamics Corp.: Company Strategy & Performance Analysis

Summary

General Dynamics produces a range of products including Gulfstream business jets, submarines, wheeled combat vehicles, and communications systems. The firm operates through four business divisions: Aerospace, Combat Systems, Information Systems, and Technology and Marine Systems. Its product portfolio comprises business aviation, combat vehicles, weapons systems and munitions, C4ISR and IT solutions, as well as shipbuilding services. General Dynamics is a market leader in the business-jet market. The group operates two sub-divisions: Gulfstream and Jet aviation. While Gulfstream produces technologically advanced business aircraft, Jet Aviation provides custom completions, comprehensive business aviation services, and a operates a network of facilities for aircraft owners and operators.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading Civil Aerospace companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via a set of key indicators, including order, order backlog, operating expense, operating income, net income, and deliveries.

Key Highlights

General Dynamics reported a strong net profit margin during the fourth quarter of 2016

The company’s revenue increased from US$7.5 billion during the first quarter of 2016 to US$8.2 billion in the fourth quarter. It then declined during the first quarter of 2017 to US$7.4 billion before rising to US$7.7 billion during the second quarter. The firms’ net profit margin increased from 8.6% during the first quarter of 2016 to 9.7% in the fourth quarter. It rose to 10.3% during the first quarter of 2017 before slowing to 9.8% during the second quarter.

Robust expertise

General Dynamics manufactures a family of Gulfstream aircraft renowned for their superior design, quality, performance, safety and reliability. It designs technologically advanced cockpit and cabin systems and has a product line comprising a spectrum of price and performance options in the large- and mid-cabin business-jet market. The firm’s G650 has the capability to travel 7,000 nautical miles at Mach 0.85, while the G650ER has a range of 7,500 nautical miles at Mach 0.85; faster than any other business jet on the market. In fact, the company has won more than 60 world speed records. General Dynamic’s commitment to new products and first-to-market enhancements strengthens its revenue stream. In 2014, it introduced two new large-cabin business jets - the G500 and G600 - that optimized a combination of comfort, speed and range, with advanced flight deck functionalities.

Increasing number of contracts to improve market presence

According to the competitive positioning of key aircraft manufacturers, General Dynamics ranked fifth in terms of deliveries and third in terms of revenue in 2016 when it reported 243 deliveries and posted US$8.4 billion in revenue from the civil aerospace segment. In the same year the firm delivered its 200th G650 jet. Deliveries increased from 215 in 2012 to 243 in 2016. In November 2016, Gulfstream Aerospace Corp signed an agreement with the Polish Ministry of National Defense for the purchase of two Gulfstream G550s. This contract helped the company diversify its revenue stream. However, the firm faces tough competition from Boeing, Bombardier and Textron. Boeing’s deliveries rose at a CAGR of 5.6%, from 601 in 2012 to 748 in 2016.

Scope

  • Company Snapshot - Details key indicators and rankings of General Dynamics Corporation in terms of revenue, net income, and operating income.
  • Company SWOT Analysis - Outlines General Dynamics Corporation’s strengths, weaknesses, and opportunities and threats facing the company.
  • Growth Strategies - Provides an overview of General Dynamics Corporation’s corporate goals and strategic initiatives and evaluates their outcomes.
  • Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
  • Key Developments - Showcases General Dynamics Corporation’s recent corporate events and initiatives.
  • ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does General Dynamics Corp. rank among its peers in terms of revenue and market share?
  • What are General Dynamics Corp. ’s main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014?
  • How has General Dynamics Corp. performed in comparison to its main competitors?
  • What are General Dynamics Corp.’s strengths and weaknesses and what opportunities and threats does it face?


Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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