Since its establishment in 2002, SpaceX has played a key role in the emergence of commercial spaceflight. After successfully launching and returning from space, it was the first commercial firm to successfully send an unmanned crewed spacecraft into orbit and dock it with the International Space Station (ISS). The corporate headquarter is situated in California. (2). In the aspirations of changing the aerospace business and making spaceflight accessible, Elon Musk founded SpaceX. SpaceX sent 48 satellites and 22,700 pounds of supplies to the International Space Station, gaining over 60% of worldwide commercial launch contracts. (1).
SWOT ANALYSIS of SpaceX
The internal strategic strengths and weaknesses of SpaceX define its capabilities and challenges. For example, its worldwide activities enable it to benefit from economies of scale, helping it compete. Rather than internal strategic considerations, SpaceX’s commercial opportunities and threats reflect the status of the satellite sector and the markets in which it competes. SpaceX must develop strategies and processes to grow and stabilize the firm ahead of the competition. With the market changing rapidly, it is vital to solving the issues raised in this Swot Analysis of SpaceX to ensure long-term growth and survival.
Strengths of SpaceX
Partnerships: SpaceX would not exist without the assistance of industry leaders. These connections have helped the company penetrate the industry, overcoming barriers such as limited cash, facilities, and missions. The company’s early collaboration with NASA’s Kennedy Space Center illustrates the power of partnerships. SpaceX has used NASA’s launch facilities, landing sites, and control oversight to conduct some of its most notable missions. (3).
IP & Innovation: SpaceX values cutting-edge technology and intellectual property. It must constantly explore new ways to develop high-tech commodities competing with NASA, China, and Russia. SpaceX has built a reputation for mission success by manufacturing its equipment and developing its workforce. Due to IP protection, competition must now design better spacecraft or produce at SpaceX’s technological level. (3).
Reusable System: They have reusable rocket technology, which helps them save money on rocket fuel costs. Moreover, they do all their development, testing, and fabrication in-house. (4).
Bonding Among Employees: As a result of the company’s spread atmosphere, employees can develop creative solutions to problems, which helps them reach their goals. They treat everyone fairly and always tolerate their teammates’ errors since they know they’re working hard. (5).
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Weakness of SpaceX
Contractual Issues: Elon Musk and NASA are the primary sources of funding for the firm. If future flights fail, they will lose the contracts they now have, resulting in a loss of money. To put it another way, this is a high-risk activity due to the uncertainty around its potential profitability. (4).
Initial Stage: Because the firm is still in the early stages of its development, certain of its outputs have not performed as well as planned thus far. Additionally, there have been multiple launch delays, and the frequency of launches is quite low. (5).
Huge Capital: Its initial budget was over $1 billion, with roughly $300 million from private investors. The 700 million dollars comes from a Government subsidiary and a 500 million dollar NASA contract. Not much money in the realm of space vehicles and launches. Due to the excessive costs of spaceflight and related technology, others have stepped in to help. (3).
Future Capabilities and Operations: Things won’t get easier for the firm as it expands. A small business may effectively produce supplies and create value through technological innovation in today’s world. As the company grows, capabilities and operations will be pushed higher. Moreover, hiring employees, setting new plants and branches, and keeping excitement will be tough. (5).
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Opportunities for SpaceX
Leading Company: There is no competition (at least not one that is as sophisticated as they are), and they are the world’s top firm in the field of rocket technology (4).
Market Growth: The need for satellite launches will increase as more and more people worldwide become technologically advanced. There will be an increasing number of businesses looking to use the orbital space encircling our globe to develop communication and internet capacity in previously inaccessible regions. (4).
Space Tourism Planning: To take advantage of this new demand for space tourism, the corporation has already begun preparing for a consumer branch. There is little doubt that the market for launch tourism is set to boom in the next twenty years, and SpaceX may be the best-equipped company to take advantage of the new industry. (3).
Contract with Nasa: SpaceX has contracted heavily with NASA to manage its market value. SpaceX’s success is attributed to its concentration on serving NASA’s needs. Innovating with governments throughout the world has made SpaceX a valuable partner. With funding cuts and declining industry, SpaceX must use these larger businesses to maintain its market position and usefulness for other partners. Using other institutions’ strengths and expertise will be a great road for the company’s success. (3).
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Threats for SpaceX
The emergence of New Competitors: If SpaceX is successful, it will open the door for other companies to enter this mostly unexplored industry. For example, Boeing, a major participant in the sector and, while they are not working on the same things as SpaceX, they could easily spend money on reusable spacecraft. (3).
Rise of Cost: Cost rises for raw materials, labor, research, and development, as well as operations, are a concern. (4).
Weak Enterprise Profitability: It was disclosed last month that SpaceX generated $2.5 billion in yearly revenues and $270 million in pre-tax earnings before interest, taxes, depreciation, and amortization for the 12 months ended in September. However, according to a Bloomberg report on the loan placement, the corporation included client prepayments in its profitability calculations while removing some research costs. (6).
Contractual Issues: Current contracts with NASA and other large organizations, like SpaceX, are at risk of being terminated. Unless SpaceX continues to perform at such a high level, authorities will stop funding the company’s operations. Because it is their primary source of revenue, the firm would be utterly destroyed if this were to happen. (6).
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RECOMMENDATIONS
This SpaceX SWOT Analysis informs us that SpaceX needs to develop new and innovative strategies. They are dependent on contractual issues, particularly on NASA. To overcome that, they need to push for more Government projects. Furthermore, plans and decisions need o to be taken to reduce their cost and enhance profitability to sustain on their own in this industry. Last but not least, the authority of SpaceX should always adhere to the regulations and the economic policies implanted by the Government and other associations.
More Related Reading
REFERENCES
- https://www.fastcompany.com/company/spacex
- https://www.britannica.com/topic/SpaceX
- https://scholarworks.gvsu.edu/cgi/viewcontent.cgi?article=1686&context=honorsprojects
- https://topnotchresearch.org/swot-analysis-samples/swot-analysis-of-spacex/
- https://eduzaurus.com/free-essay-samples/spacex-strengths-and-weaknesses-analysis/
- https://www.forbes.com/sites/lorenthompson/2018/12/11/five-existential-challenges-facing-elon-musks-spacex/?sh=3f2a0325127d
