United Technologies Corp - Company Strategy & Performance Analysis
United Technologies Corp (UTC) serves customers in the commercial aerospace, defense and building industries. It provides high technology products and services to the building systems and aerospace industries. The company has organized its business operations into four customer segments, namely: UTC Aerospace Systems, Pratt and Whitney, UTC Climate, Controls and Security and Otis.
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
Comprehensive service portfolio enables the company to maintain its competitive position:
UTC offers a wide range of products and services that helps it to serve a broad range of customers and gain a competitive advantage over its peers. It provides advanced technological products and services to the building systems and aerospace industries. The company offers products and services in defense sector through its ‘UTC Aerospace’ and ‘Pratt and Whitney’ segments. UTC Aerospace provides technologically advanced aerospace products and aftermarket service solutions. Its aerospace products include flight systems, environmental control systems, fire protection and detection systems, auxiliary power units and propeller systems. Pratt & Whitney (P&W) supplies commercial, general aviation and military aircraft engines.
Mergers and acquisitions enable the company to expand its market presence:
Acquisitions and strategic alliances were the company’s focus in 2015 in order to enhance its UTC business portfolio and improve its operational performance. For instance, in 2015, UTC Aerospace Systems acquired N2 Imaging Systems. The acquisition added new technology to the company’s extensive portfolio which in turn supported the US military’s strategic, operational and tactical operations. The main objective of the acquisition was to develop the most advanced imaging technology to support the US army’s RSTA mission.
Substantial decline in arms sales affected the company’s market share:
The company posted a substantial decline in its arms sales, which affected its competitive position. Its arms sales declined from US$9,500.0 million in 2014 to US$13,020.0 million in 2015. The decline in arms sales is primarily attributed to the company’s operational constraints affecting order deliveries. In addition, budget cuts in the US have also contributed to the decline in arms sales.
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