Case Study | 25 August 2025
Competitive Analysis for an Aerospace, Marine, and Defense Company and Benchmarking to Accelerate Growth & Profitability
Posted by : Sanya Mehra
A multinational aerospace, marine, and defense corporation aimed to enhance its global presence and secure a loyal customer base while preparing to launch a breakthrough innovation, i.e., AR/VR-enabled Vertical/Short Take-Off and Landing (VTOL) aircraft. However, technical glitches, cost hurdles, and competitive pressures created hurdles in the product’s commercialization. The company approached RNPL consultants for an in-depth competitive analysis and provided benchmarking strategies to improve efficiency, optimize pricing, and position itself strongly in the market.
An overview:
- The corporation had an extensive product portfolio spanning advanced aircraft, naval vessels, combat vehicles, and ammunition systems.
- The leadership was preparing to introduce augmented and virtual reality features into its unmanned VTOL aircraft.
- Before commercialization, the firm aimed for a comparative evaluation of its product features, pricing policies, and overall positioning in the global aerospace and defense market.
- The company also wanted to benchmark the operational efficiency of its unmanned VTOL against leading industry players.
- RNPL analysts were brought into picture to assess the competitive landscape and identify strategic benchmarks for market entry and profitability.
The Story
The company originated from a 2006 collaboration between a UK-based defense electronics and shipbuilding subsidiary and a global aircraft and ammunition manufacturer. Since its beginning, it has played a major role in key defense modernization programs, gaining a reputation for innovation and reliable defense solutions.
By 2015, the corporation had invested heavily in R&D, emphasizing unmanned systems and digital technologies. It successfully patented advanced AI-driven avionics and sensor systems. Building on these capabilities, it planned to combine AR/VR into its VTOL aircraft to grant improved situational awareness for pilots, real-time simulation for training, and greater adaptability in complex missions. However, the innovation journey was fraught with obstacles:
- Compatibility challenges: Synchronizing AR/VR modules with existing avionics caused latency issues in real-time data transfer.
- Technical roadblocks: Low-latency communication between AR/VR interfaces and flight control systems was not stable, increasing operational risk.
- High upfront costs: The integration demanded substantial investments in hardware, software, and pilot training programs, stretching the R&D budget.
- Competitive pressure: Rival companies had already introduced AR/VR in military rotorcrafts, particularly for emergency medical operations, making them more adaptable and efficient.
The leadership felt that delayed entry, weak pricing strategies, and incomplete benchmarking could erode its technological advantage. To prevent this, it turned to RNPL consultants for a detailed solution.
Our Solution:
RNPL analysts diagnosed the central issue as the absence of a clear integration and benchmarking framework for AR/VR in the VTOL segment. Although the company had cutting-edge innovations, it lacked a structured validation and competitive alignment.
The RNPL team carried out a three-pronged approach: competitive analysis, benchmarking, and strategic repositioning.
Competitive Landscape Assessment
- Analyzed global aerospace and defense companies investing in AR/VR and found out segments such as rotorcrafts, UAVs, and naval systems, in which alignment was mostly commercially viable.
- Pointed out that top industry players prioritized rotorcrafts over VTOLs due to their proven efficiency in combat operations as well as humanitarian roles like medical evacuation and rescue missions.
- Surveyed competitor pricing strategies and performance standards, showcasing that affordability and speed of deployment outweighed complex add-on features.
Benchmarking Standards
RNPL consultants created performance benchmarks across four key areas:
- System performance optimization: Ensuring AR/VR modules achieved low-latency synchronization with avionics and flight systems.
- Environmental endurance: Stress-testing AR/VR-integrated aircraft to endure extreme weather, electromagnetic interference, and field operations.
- Durability standards: Conducting extensive durability trials to validate lifecycle costs and maintenance efficiencies as compared with competitors.
- Training frameworks: Developing immersive simulation-based training programs to train pilots and crew for AR/VR operations effectively.
Strategic Recommendations
- Shift focus from VTOL to military rotorcraft as the initial launch platform for AR/VR technology. This repositioning matched market demand and competitor trends.
- Pricing alignment: Introduce competitive pricing below premium rivals to penetrate the defense procurement market.
- Operational trials: Use pilot projects in collaboration with defense forces to demonstrate technology in real-world scenarios.
- Value differentiation: Place the aircraft not just as an advanced VTOL system but as a mission-ready, AR/VR-integrated rotorcraft capable of multi-environment adaptability.
Customized Deliverable
- RNPL delivered a Military Rotorcraft Market Report, which included detailed insights into emerging trends, procurement opportunities, competitor benchmarks, and an actionable way for product repositioning and launch.
- On the basis of these insights, the company updated its innovation pipeline, reallocated R&D funds, and strategically aligned its launch timeline.
Results
The implementation of RNPL’s ideas resulted in measurable outcomes:
Market Repositioning Success
- Instead of forcing AR/VR into the VTOL platform, the company launched AR/VR-enabled military rotorcraft by late 2019.
- This repositioning enabled it to rapidly align with real market demand while maintaining its name as a first mover in advanced aviation technology.
Revenue Recovery
- In the first decade, the company recorded profits of 65%, with sales crossing USD 560 million in 2016.
- By 2018, due to competitive pressure and a delay in innovation, revenue had fallen to USD 230 million.
- After applying RNPL’s competitive ideas, sales got back to USD 850 million by 2022, with profit margins stabilizing at 40%.
Operational Excellence
- Performance optimization and durability testing decreased system glitches by nearly 35%, increasing aircraft reliability.
- Training programs resulted in faster adoption by defense pilots and crews, improving deployment efficiency.
Competitive Advantage
- By offering AR/VR rotorcrafts at a lower cost than rivals, the company secured multiple procurement contracts across Europe and Asia.
- Its market ranking as a top-tier aerospace innovator improved, restoring credibility and investor confidence.
Sustainable Growth
- Despite less profit margins, the company doubled its productivity, enhanced turnover, and created a stable base for further innovations.
- The strategy also provided scalability for introducing AR/VR into future naval and unmanned aircraft platforms.
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