L-3 Communications SWOT Analysis, USP & Competitors

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SWOT Analysis of L-3 Communications with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

L-3 Communications

Parent Company

L-3 Communications Holdings, Inc.

Category

Aerospace and Defense Industry

Sector

Industrial Products

USP

Specialize in providing communications, intelligence, surveillance and reconnaissance systems

STP

Segment

Electronic systems, aerospace systems, communication systems and National Security Solutions (NSS)

Target Group

Military, other government and commercial customers

Positioning

Prime contractor in aerospace systems and national security solutions

SWOT Analysis

Strengths

1. One of the top defense contractors of US government employing over 45,000 people
2. Provides manufacturing as well as maintenance services
3. Diversification into maintenance means it is shielded against demand fluctuations in the market
4. Competitiveness in the market due to focus on Research & Development

5. Entrepreneurial culture of the organization enables it to have the speed of a small organization, while having the advantage of collective scale of a big organization

6. Strong customer relations ship amongst the business units

Weaknesses

1. Lack of geographic diversity with major market share and dependence on the US market
2. Weak financial performance can derail future growth plans

Opportunities

1. Growth in Unmanned Ariel Vehicle (UAV) market where it has made rapid strides in technology with acquisition of Thales Group
2. Emerging foreign markets 
3. Order backlog is robust and new contracts are being signed which will help to register stable revenue

Threats

1. US Government initiative to consolidate defense sector
2. Economics slowdown and decrease in spending by US government could hurt revenues
3. Environmental rules and regulations will affect definitely have an effect on its profitability

Competition

Competitors

1. General Dynamics Corporation
2. Lockheed Martin Corporation
3. Honeywell International Inc.


The table above concludes the L-3 Communications SWOT analysis along with its marketing strategy and brand parameters.

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