The company had a strong product portfolio that comprised aircraft, naval vessels, manufacturing and designing combat vehicles, and providing ammunition and artillery systems.
The company wanted to introduce augmented & virtual reality in its Vertical/short take-off and landing (VTOL) aircraft.
Before launching it in the market, the company wanted to analyze the competitive landscape with its VTOL product features and pricing policies.
The company further wanted to examine the operational efficiency of its unmanned VTOL aircraft and compare the same with the industry benchmarks
Research Nester analysts were consulted to scrutinize the competitive scenario and explore the benchmarking standards.
The company was incorporated as a merger of a UK-based defense electronics and naval shipbuilding subsidiary with an aircraft and ammunition manufacturer in 2006. Since its formation, the company has been a part of several major defense projects. It had always been focused on changing customer needs, evolving market trends, and technological innovations. It invested a good deal in research and development and patented highly advanced technology to launch unmanned aircraft. However, its latest innovation of integrating Augmented and Virtual Reality in VTOL aircraft was presenting several challenges. There were complications regarding compatibility and real-time synchronization between the complexities of AR/VR structure and critical flight systems. Apart from that, the low-latency data transmission was also a technical issue. The high investments considering the significant upfront costs and low return on investment gradually eat up the company resources. The same technology was already being developed by a few competitors and was being successfully launched. Hence, before the company introduced its own product, it wanted an in-depth analysis of the competitive landscape and benchmarking analogy. The leadership turned to Research Nester for a thorough investigation of the scenario.
The major issue with the company’s innovative strategy was its failure to develop a robust integration strategy to ensure seamless compatibility and synchronization between AR/VR technology and its aviation systems. Research Nester analysts observed that although the company was among the pioneers of the technology and had been investing huge amounts of capital in research and development, it was not able to scrutinize the faults and issues that were easily diagnosed and rectified by its competitors. In addition, the company was losing out on the market share owing to the time lag of its innovative introduction. Its ranking among the top technologically advanced aircraft manufacturers was, as such, dipping considerably. As further examined, the technology was majorly used in Military Rotorcrafts instead of VTOL by the leading competitor. Military rotorcrafts being compact and much in demand in medical and other emergencies were more adaptable and would become more efficient with AR/VR technologies. RNPL consultants offered a customized solution in the form of the Military Rotorcraft Market report, which provided a detailed analysis of the opportunities and current and emerging trends of the market. It further advised the following suggestions-
The company deployed the above measures and was able to successfully launch its AR/VR-integrated rotorcraft. The low price and greater efficiency worked in its favor to provide it with a prominent market position in the segment.
The company witnessed a robust revenue in the first decade of its incorporation. Considering its focus on research and development and the introduction of innovative technologies, the company’s growth was marked by high-profit margins of around 65%. The revenues reached ~USD 400 million in 2014 and ~USD 560 million as of December 2016. However, with the expansion of the aerospace, marine, and defense sector and growing competition, the company saw a dipping market owing to its pricing policy. With technical issues in the innovations, the company’s ranking also fell. In 2018, the revenue stood at ~USD 230 million. With the incorporation of the strategies advised by RNPL consultants after their assessment of the competitive landscape, the company was able to bounce back with better capabilities and growth opportunities. Although, the profit margins went down to 40%, the productivity, and growth doubled along with the turnover. As such the company managed a robust revenue of ~USD 850 million in 2022.