BAE Systems

BAE Systems Overview

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Founded: 1999

Workforce: ~87,800

Company Working: BAE Systems (BAE) operates in over 40 countries and employs a large skilled workforce. The company operates as a leading defense, aerospace, and security firm. It operates through five business segments, namely, platforms and services, electronic systems, air, maritime, and cyber & intelligence. Through the maritime segment, BAE offers naval vessel MRO services. The company has its offices in Australia, India, Saudi Arabia, the UK, the US, and in a number of other countries across the globe.

Strategy

SWOT Analysis

Strengths

Strong sales and distribution network
Skilled workforce
Large customer base
Significant industry experience
Wide Product Portfolio
Diversified business segments
Strong R&D base
High product innovation
Strong brand image
High R&D capabilities
Vast global presence
Strong market position in the defense industry with a diverse portfolio of products and services
Strong partnerships with governments and defense agencies worldwide

Weaknesses

High dependence on US government contracts
Limited offerings for counter IED market
High dependency on contracts from the US government
High dependence on contracts from the US government
Fluctuations in financial performance
Limited products offering
Low profit margins
Limited presence in the private sector
Highly dependent on US & UK market for revenue
Dependence on government contracts, making the company vulnerable to shifts in government spending and priorities
Exposure to geopolitical risks, including sanctions and political instability in key markets

Opportunities

Surge in military spending in emerging economies
Increasing demand for innovative products
Expansion in the emerging markets
Expanding to the emerging markets
Expanding to emerging markets
Favorable government norms
Focus on strategic collaborations and acquisitions
Expansion in untapped market
Growing demand for defense products and services due to geopolitical tensions and increasing defense budgets
Expansion into emerging markets, particularly in Asia-Pacific and the Middle East

Threats

Fluctuations in financial performance
Increasing presence of competitors such as Kongsberg Maritime and Saab AB in the North American market
Increasing presence of competitors such as Thales Group and Saab AB in the North American market
Increasing presence of competitors such as Thales Group and Lockheed Martin Corporation in the North American market
Intense competition
Stringent government regulations
Fluctuating foreign currency exchange rates
Intense competition from other major defense contractors, including Lockheed Martin and Boeing
Potential changes in government policies and regulations impacting defense spending and procurement decisions

Key Developments

Date	Approach	Development
April 2020	Contract	BAE signed a contract with the US Navy, amounting to USD 200.3 million. Under the contract, the company will provide dry dock MRO, maintenance, and modernization services for the US Navy’s amphibious assault ship, USS Boxer (LHD 4).
January 2020	Contract	BAE signed a contract worth USD 175 million with the US Navy to provide modernization service for the latter’s guided-missile cruiser, USS Vicksburg (CG 69).
September 2019	Contract	BAE signed a contract worth USD 170.7 million with the US Navy to provide maintenance and repair services for the US Navy’s two Arleigh Burke-class (DDG 51) guided-missile destroyers.
August 2019	Contract	BAE signed an indefinite-delivery (ID)/indefinite-quantity contract (IQ) with the US Navy to enhance flight safety systems and maritime operations, aboard new construction aircraft carriers and large deck amphibious ships.
July 2019	Contract	BAE signed a contract worth USD 70.6 million with the US Navy to upgrade Mk 45-gun systems.
March 2019	Contract	BAE signed a contract worth USD 41.8 million with the US Navy to provide maintenance and modernization services for the US Navy’s amphibious transport dock ship, USS Anchorage (LPD 23).
February 2019	Contract	BAE signed a contract worth USD 114.5 million with the US Navy to provide maintenance and modernization services for the US Navy’s guided-missile destroyer, USS Bulkeley (DDG 84).
January 2019	Contract	BAE signed a contract worth USD 78.8 million with the US Navy to provide maintenance and modernization services for the US Navy’s USS Shoup (DDG 86), a guided-missile destroyer (DDG).
June 2018	Contract	BAE signed a contract worth USD 36.6 million with the US Navy to provide modernization services for the US Navy’s guided-missile destroyer, USS Cole (DDG 67).
January 2018	Contract	BAE signed a contract worth USD 47 million with the US Navy to provide modernization services for the US Navy’s guided-missile destroyer, USS Howard (DDG 83).
June 2019	Contract	BAE Systems signed a five-year indefinite-delivery/indefinite-quantity (ID/IQ) contract worth USD 90 million with the US Navy. Under the contract, the company will provide engineering and integration support for the US Navy’s C5ISR systems. The contract will enable the US Navy to experience enhanced maritime security.
February 2019	Expansion	BAE Systems inaugurated its new campus in Manchester, the UK. The development of the new office will enable the company to strengthen its position in the UK defense market.
January 2019	Contract	BAE Systems signed a five-year contract worth USD 79.8 million with the US Navy to provide maintenance and support services for the Navy’s command, control, communications, computer, and intelligence systems.
December 2018	Contract	BAE Systems signed two ID/IQ contracts with the US Navy worth USD 150 million to integrate C5ISR systems on the US Navy’s naval ships.
July 2018	Expansion	BAE Systems inaugurated its new office in Alabama, the US. The development of the new office enabled the company to strengthen its position in the US defense market and offer enhanced services to the US Navy and US Army.
September 2017	Contract	BAE Systems signed a contract worth USD 76 million with the US Navy to develop communication and electronics platforms for the Naval Warfare Center Aircraft Division (NAWCAD).
February 2019	Expansion	BAE Systems inaugurated its new campus in Manchester, the UK. The development of the new office will enable the company to strengthen its position in the UK airport surveillance radar market.
November 2018	Contract	BAE Systems signed a contract amounting to USD 72 million with the US Navy to provide air traffic control and landing systems services to the latter.
July 2018	Expansion	BAE Systems inaugurated its new office in Alabama, the US. The development of the new office enabled the company to strengthen its position in the US airport surveillance radar market and offer enhanced services to its customers.
July 2021	Contract	BAE Systems, Inc. signed a contract with luxury sailing yacht builder Southern Wind to provide the electric-hybrid power and propulsion system for a new high-performance superyacht.
December-2023	Contract	Sweden and Finland placed $32 million orders for BAE Systems' advanced 3P ammunition.
April-2023	Material Development	BAE Systems anticipates conducting demonstration firings with its next generation 155mm artillery ammunition this year and targets British Army requirements such as the Mobile Fires Platform and Lightweight Fires Platform.