Marketing Audit: BAE SYSTEM

Introduction

BAE System is one of the oldest aircraft service provider companies that can be traced back even before World II when people were using human-crewed flights together with wireless communication systems by then (BAE System, 2011). It is still regarded as one of the leading aircraft manufacturers not only in Europe but in the entire global manufacturing of Aircraft globally. Some jets and Aircraft known for do include: Avro family regional jets and even Turbo prop Aircraft, which is very common and widely used in the UK and mainly in Europe. It achieved most of its success since the 1980s up today, still being one of the leading companies in the aircraft market. However, this does not exclude it from facing both financial and financial challenges as a company. One of the significant challenges has been stiff competition from other firms that offer almost similar products as the company does. This has adversely led to a gradual decrease in the total number of customers affecting their profitability level as a company and even growth. Besides all these marketing challenges, the company has maintained its market share, assets and even improving the quality of the respective Aircraft they produce from time to time.

• Marketing Environment

Macro Environment

Political and Legal Environment

Every market structure is affected by both political and legal conditions that do exist, such as threats, divergence legislation from country to country, and the political temperatures which do exist at particular times. For instance, the ‘open Skies’ in the USA and entire Europe has created a favorable cost-saving environment for the carriers in such markets, (Sujlana, B. 2009). Besides, the general design of these Aircraft keeps changing as per legal environment requirements from time to time. A good example of improvement is the existence of the BAE 146 jet, which is capable of short take-offs and, therefore, able to land quickly in any airstrip or airport available.

Social-Cultural Factors

With globalization, most people, in particular business individuals globally, have significantly increased the available, total flights that they do make in an attempt to conduct their business, and this has been favored by low traveling costs imposed by these carriers service providers and also increase the competition in the general sector, (Jazayeri, M., & Scapens, R. W. 2008). Besides, increasing the number of travelers’ globalization has also created a higher market for jets, some being designed to represent specific social-cultural factors.

Economic-Demographic

Like any other sector, the aircraft industry is also affected highly by business cycles that affect their total profitability level both in the short-run and long run. For instance, the covid-19 pandemic has affected it. But due to the higher rate of an increasing number of customers who require the services of Aircraft and carriers, the company, just others, has been able to sustain its operation level.

Environmental

As one of the current emerging factors, such as global warming, the sector has adversely been affected. As a company, it has made many technological improvements to reduce the level of carbon footprint with a more significant percentage.

Technological

The sector that has significantly from technological improvement is Aircraft and carriers, as it has dramatically influenced their production capacity and quality. For instance, the company embarked on improving its general internal Materials Requirement Planning to keep up with the ever-changing technological advancement in the world (BAE System, 2010). The company has also been able to open up a portal where it can get its customers’ views and increase their general service quality.

• Micro Environment

Market

Like another market, the sector has and still witnesses an increased entrance of new firms into the market, which results in a lot of competition and an opportunity to improve the production quality. Besides, the profit level has decrease due decrease in the price charged. The market has also been divided into different segmentation to increase service delivery, and this is expected to increase the general growth level of the public companies with the BAE system included in the mix.

Customers

BAE is still regarded as the best service provider in the market as per the customer’s report. It still can occupy a higher market share due to the quality of services it offers from its Aircraft. Still, it has gone down due to a higher competition rate of the larger companies with a higher capability than BAE, but customers trust has kept in liquid and a going concern, (Thomas, T. C. 2019). One of the firm’s challenges is the degree of higher customer demand, which cannot be met quickly.

Competitors

Today’s aircraft and currier industry have a lot of rivalry between the firms themselves from Airbus UK, Bombardier UK, and GE Aviation system. All the firms have different strategies and objectives, but the most common is increasing their market share, translating to higher sales volume and higher profitability, (Bae, Y. S. 2021). However, some of BAE’s strength is the higher market share characterized by loyal customers, while weakness is a higher price than other firms in the market. With the current market trend, there is the probability that firms will merge in an attempt to counterattack the competition rate which currently exists.

Suppliers

Suppliers’ general bargaining power has dramatically reduced. Almost all airline companies have shifted their attention to customers in particular. Strategic alliances between different companies are thus organized to provide competitive and financial advantage through their collaboration in business. Therefore, other companies with BAE systems are looking to attract more customers and source the equipment from an identified group of manufactures at a lower cost.

Distributors and Dealers

Though there is a low level of distributors and dealers in this industry, this has caused some aircraft firms like Boeing’s legacy value to reduce significantly, thus causing many customers to prefer it at the expense of BAE system aircraft, which is damaging. But there is an attempt that involves dealers in a move to increase customer share preference in it.

• Internal Audit

Market strategy Audit

Marketing Objectives

BAE system corporate objectives are not that much stated clearly since some of the logic lacks the respective company objective besides lacking a clear guideline on how to achieve them efficiently.

Furthermore, the company does lack a clear and effective marketing plan which will see its market share improve like other companies like Boeing, Airbus UK, and emirates, among other big companies in the sector. According to regional Aircraft, BAE is exceptionally inefficient to compete with other companies since it is currently facing many marketing environment challenges as a company, (Fosberry, M. et al. (2020, August). Therefore, the management needs to have a better and logical strategic plan and objectives that will drive the company towards achieving its set targets, mission, and vision. Furthermore, there are no clear overall goals of BAE and that of regional Aircraft.

Strategy

The company is regarded as lacking a proper and efficient modified team that can enable it to be successful in this challenging market environment. The company’s known brand has considerably declined besides being familiar, so there is a need to rebrand it to get back to its original position. The company also lack adequate resource which can enable it to achieve its set targets which are either financial or non-financial. Therefore, there is a need to reallocate the resource efficiently to conduct market and financial optimality in Europe and the global Arena.

• Marketing Organization Audit

General marketing activity depends on various factors that cost any company a good proportion of financial constraints. BAE system has dramatically failed in an attempt to acquire new business structures which are needed. However, it has made various attempts to correct this thought; there is still a lot that needs to be done to achieve all this.

• Marketing System Audit

According to the evidence on the company’s website, it has configured different products, ranging from support, engineering, and other kinds of asset management. However, this does not match customer satisfaction depending on the current demand in the sector. From further research, customer management is essential and challenging. The BAE system needs to take keen consideration on it to be at just like other competing firms.

• Marketing productivity Audit

The general analysis of the company does point out that the majority of its income is from minor accounts, and its fleet accessibility is gradually decreasing at an increasing rate. And with the emergence of new fleets, customers have a higher probability of shifting to the new and modern ones. This will probably lead to a lower return, and the company will start running into losses. Therefore, there is a need for the company to build up its capabilities and even alliances with other companies in the market to avoid the predicted financial constraint.

• Marketing functional audit

With the current marketing trend, the company needs to carry out promotions and trade shows to attract and inform their respective customers on their existence and the kind of services they offer, making them unique and trusted, (ADUGNA, D. 2021). . Therefore, the company needs to focus a lot on service delivery and improve the general market share in an attempt to have as many clients as possible and thus sustain its operational cost.

References

Jazayeri, M., & Scapens, R. W. (2008). The Business Values Scorecard within BAE Systems: The evolution of a performance measurement system. The British Accounting Review, 40(1), 48-70.

Blackwell, R., Lacroix, D., Bach, T., Ishii, J., Hyland, S., Dumas, T., … & Sujlana, B. (2009, May). 17 µm microbolometer FPA technology at BAE Systems. In Infrared Technology and Applications XXXV (Vol. 7298, p. 72980P). International Society for Optics and Photonics.

Johnson, A. D., McMahon, B., Livadaru, M., & Fosberry, M. (2020, August). Phased array advantages at BAE systems. In 2020 IEEE 63rd International Midwest Symposium on Circuits and Systems (MWSCAS) (pp. 428-431). IEEE.

ADUGNA, D. (2021). INFORMATION SYSTEM SUCCESS ANALYSIS AND THE FLOW OF E-COMMERCE: CASE STUDY ON BAE FOREIGN TRADE AND EXPORT (Doctoral dissertation, ST. MARY’S UNIVERSITY).

Ashraf, M. U., Kim, Y., Kumar, S., Seo, D., Ashraf, M., & Bae, Y. S. (2021). COVID-19 vaccines (revisited) and oral-mucosal vector system as a potential vaccine platform. Vaccines, 9(2), 171.

Neumann, T. A., Martino, A. J., Markus, T., Bae, S., Bock, M. R., Brenner, A. C., … & Thomas, T. C. (2019). The Ice, Cloud, and Land Elevation Satellite–2 Mission: A global geolocated photon product derived from the advanced topographic laser altimeter system. Remote sensing of environment, 233, 111325.

Lee, M., Bae, J., Lee, J., Lee, C. S., Hong, S., & Wang, Z. L. (2011). Self-powered environmental sensor system driven by nanogenerators. Energy & Environmental Science, 4(9), 3359-3363.

Appendices 1

BAE System is one of the oldest aircraft service provider companies that can be traced back even before World II when people were using human-crewed flights together with a wireless communication system (BAE System, 2011). It is still regarded as one of the leading aircraft manufacturers in Europe and the entire global manufacturing of Aircraft globally. Some jets and planes that it is known for include Avro family regional jets and even Turbo prop aircraft, which is very common and widely used in the UK and Europe. It achieved most of its success since the 1980s up today, still being one of the leading companies in the aircraft market.

Some of the company’s key competitors are Boeing, Airbus UK, Bombardier UK, GE Aviation system, among others which are in the same level of capacity and market share as BAE System Company and therefore posing a lot of competition to the firm. Most of the company customers are businessmen and women besides average travelers who rely on the services regularly.

Appendices 2

Appendices 3

Appendices 4