Economic Darwinism in the defense industry: an analysis of corporate responses
Peck, Thomas R.
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This thesis identifies and assesses the corporate strategies adopted by the top defense companies as a result of the new defense spending environment. The model used throughout the thesis stipulates four corporate strategies: expansion, diversification. globalization, and rationalization. The thesis outlines the fundamental elements of each strategy and highlights the significant actions taken by the top defense companies. Finally, the factors that framed the selection of these strategies are examined. The compatibility between current skills and production capabilities with market opportunities was the most influential factor in strategy selection. Because of the lead time resulting from backlogs and aggressive cost cutting, the financial viability of the top defense companies is not at risk. The thesis concludes that each of the strategies was pursued to nearly the same degree and many of the companies are pursuing multiple strategies.
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