Adams Aircraft Analysis Report

Adam aircraft is a company that mainly deals in designing, building and certifying new products. The main factor that brought this company into being was that in the aviation industry for many years it lacked a company that wanted to get involved in the business of making new aircrafts from scratch. The above was experienced due to two factors lack of financing and lack of government support. These two factors can be elaborated by the following sentiments:   it’s not until 1994 when the government stepped in to protect aircraft manufacturers from lawsuits that emanated from dealing with aircrafts that were older than18 years. Before this the industry had died because of the many suits that had been filed. Thus not many people wanted to join an industry that would cost them more money in running other than the investment itself. To build a single aircraft is valued at the price of 250 million dollars this value is minus the certification process which takes a lot of money. The two factors are the main contributors of lack of innovation when it comes to the aviation industry. Adam Aircraft Company is an example of a company that has defied all odds in the aviation industry by escaping such hurdles as technology, capital, competition from staunch players like the Cessna and Boeing builders, and skeptics’ from players of the aviation sector, to come to a point of success by creating A500 and A700. The company is faced with major responsibilities which include the need of more finances to improve their innovation models in this industry as they have majored in light weight jets. In the past they have been using a lean budget to oversee their innovations. The company has opted to this kind of plane to increase its utility and increase efficiency. Another major responsibility faced by the company is the need of working through a lean budget, to deliver planes in good time that are not behind schedule or which will be carried out in a slow pace attracting the attention of competitors who will end up using their ideas to make better planes. Adam aircraft company has done well from its conception of humble begins they have grown to beat some of their competitors just by being innovative and timely in their actions. By the fact that they take anything that comes their way with outmost confidence they work with ultimate swagger of understanding their strategies well and to the core. They have taken the advantages of technology and used it to their advantage, this they have done by making it possible the designing of plane structures using the computer which tends to give them preciseness and accurate findings. The fore-mentioned idea helps the company to beat deadlines. Its engineers are always ready to upgrade new ideas and learn more as they work hence their ingenuity is affected to the maximum. When faced with challenges they tend to face it with an attitude of possibilities other than brushing it away to oblivion. Take for the case of john being asked if they can be able to solve the problem of putting an overhead window on an A500 plane to increase visibility of the tanker high and right, the engineers at Adams aircraft could do it in a week’s time. The engineers at Adams aircraft are committed people who are adaptable and flexible flourished and with their years of experience. Key recommendations include the need of motivation which should be revived daily in the company as the spirit of innovation is kept alive. Recruiting new engineers as their market flourishes should be inculcated as the new employees come in, in-training and key company strategies should be instilled in them. Introduction This analysis report on Adam Aircraft Company will mainly dwell on two issues how to waiver competition from established companies in this sector and the challenges that they face as they try to sell their product and new innovation ideas to a market that seems to be resilient to change. The market seems to be inflexible and question new comers who come to the arena. Will the company be able to sell its new innovative ideas because they need the money when it comes to expansion and carrying out research as they invent new products in the aviation industry? The art of selling themselves in market that has lain dormant for more than 3 decades is a major hurdle this report is going to evaluate the market, try to comprehend what the market needs in terms of approach, what kind of problems the industry faces when it comes to a stringent, inflexible, neglected market. (Sheehan 2003) How will they counter the problem of competition in relation to timeliness? They have to invent ways on which they can increase their speed when it comes to the time given to research new findings and the time of implementation of research findings. This is the main factor that will distract their competitor’s stables. How to go about it has to be brought to the light by the basis of finding the strengths and weakness characterized in the sector. Marketing Adam Aircraft Company has a market plan already set in place this is by the fact that it sells its product to the government and private owners. It has specialized in selling of the A700 Models twin engine aircraft and A500 Models thrust twin engine aircraft meaning it has a goal in place.   But how can they increase their market space in order to increase transactions which will alleviate the problems of job cuts brought about by the economic melt down that is being experienced world wide? One market area they should expound in, is the private owners through the charter system. They can make them their biggest customers by approaching and selling their ideas to them. With their A700 Model which can carry an approximate number of three people per trip it can go down well because the charted planes operate like taxis or cabs. Though people would like to travel in charted planes the ability to do so sometimes is unachievable. Hence Adams Aircraft Company should be able to provide affordable rates when it comes to their chattered services. Availability and accessibility of their planes should also be improved. The second market group is the private jet charters, this group can be considered a unique group which brings about specializing the services. People who make up this group consist of entertainers, athletes and celebrities these kinds of people are always on the move and are on tight schedules. Thus they need to have packages that are efficient and reliable. These private planes should be constructed in such way that will enhance privacy, comfort ability and convenience. By making them spacious, by having in built refreshing areas and other essentials that will be needed by this group of people. (Sheehan 2003) The advantage of investing in chartered airplanes is the fact that security details are given full cover. In that the charter company takes full responsibility when disaster strikes like terror attacks. Another advantage posed by private jets is that the customers are exposed to the equipments of the plane thus knowing and gaining full knowledge of the plane thus the eventual buying of the plane. A private charted plane also encourages employees and workers to communicate with each other without much ado of others hearing their work matters. In chartered planes the customers get the advantage of using a wide variety of services offered with different planes for various kinds of operation needed by the customer. This is because small planes have variable speeds and different kinds of equipments installed hence it gives the user an opportunity to experiment with all planes and one day perhaps will buy the best of them all. To reach the clients the company needs to employ various marketing skills such as employing sales personnel, employing direct customer contact and reaching out to other companies that offer the same kind of services to rent the companies planes. To penetrate the market even further Adam Company can develop a soft ware that will enable the market to respond to problems experienced while using its services. This will make the definition of the customers problem to be highlighted and alternative solutions be delivered. The company also should diversify its network to other countries especially developing countries who have the older models kind of planes that tend to have major snarl ups especially when it comes to visibility problems. Due to the high research inn put being put by the company it should find ways of approaching governments of other countries on the advantages of using their highly motivated air planes that have spare parts availability. Adams Aircraft Company can also venture into creating spare parts of old models. Thus this will increases their market share, because of the vacuum created due to the dormant years. It can take the initiatives of inventing more susceptible spare parts that will be used on old models. This initiative will go along away in increasing their capital standings, because it will cover even models that are not of their company. Thus beating their competitors at their own game, taking for instance they will increase their innovativeness when it comes to these said spare parts. This venture will mean more money being pumped in for research purposes but the out right benefits to be found afterwards are of outmost gain. They can take the above measure into two ways, one creating spare parts that are compatible with what they are specializing in that is for A700 planes and A500 planes, here they only need to upgrade the spare parts of other models to be compatible with theirs, this will enhance saving on capital subjected to the project. The second way is creating new spare parts from scratch for the old models. This will mean a lot of research input and capital investment. In conclusion it’s a venture that will increase its market share and pump in more money to the company. Competition Competition is another area of concern. Adam aircraft company should device ways on how to combat competition from their detractors. Adam Company is a new company in this arena compared to pipers, Cessna and Boeing which have rooted their operations world wide.   By taking advantage of their research and innovativeness they can increase their profit margin. But their lean budget tends to restrict them to progressive meaningful steps. This is to imply that timely acts can differentiate between the space of actual innovation and implementation. (Sheehan 2003) Adam aircraft company should pump more money to its research programs this will enhance its innovative programmes. This should be followed by specializing in the manufacturer of light weight jets only. This will mean they will go into research to improve what they already have meaning, not much money will be needed because it’s a continuation of the first process. They will be aiming to improve in efficiency, increase in capacity, and increase speed. By concentrating on a selected set of items more energy is directed to one certain point thus the end product will be a good product that doesn’t waiver because of economic recessions. The time between innovation and making a complete revolution of a product should be decreased with appropriate money set aside for certification process which is quite expensive. Business in mini jets and jets is anticipated by the majority of the population which likes to save time that is usually wasted at the airports and a population that likes to enjoy privacy and convenience thus this factor should motivate Adam Aircraft Company to continue producing its series of light weight jets. (Sheehan 2003) Two specific trends that favor the innovation of jets are as flows: proliferation of fractional ownership programs and the introduction of relatively low cost mini jets. As explained in other paragraphs increased flexibility in trip scheduling has improved by the accessibility of mini jets. Fractional ownership can be defined as the process where by a company buys a fraction of a fleet owned by lets say Adam Aircraft Company. This entitles that particular company to use that fleet at their own convenient time while paying for the services rendered. This includes the use of every kind of aircraft that Adam Company owns in its fleet this is arranged on the basis of the company paying a small fraction of the typical purchase price. This arrangement provides the user with a fixed number of hours that can be used per year. Another more innovative way of practicing the above idea is that of having jet cards program that entails individuals and companies to accesses flight time in 25 hour increments, hence increasing accessibility and lowering the cost than buying into a fractional ownership program. The above area hasn’t been exploited to its limits thus Adam aircraft Company can specialize in it. (Sheehan 2003) Manufacturers of these small jets should be well equipped to serve its clients who are more interested to efficiency and service delivery. The demand of these small airplanes has risen as years go by, Adam Aircraft Company should innovate smaller piston engines that can impact high altitude air space and air space around major metropolitan areas. It is expected by 2015 the growth and idea of plane taxi would have spiraled to up to 20% this should be factor on which Adam aircraft company should rely on to beat its competitors. The main cause of the two problems that is market penetration and competition can be attributed to one, a market that has lain dormant for over thirty years without the introduction of new products. The market was used to having models made in the sixties and seventies whose wiring systems and engines had been elapsed by time and technology, though they had adapted fine to its defects. The entry to this sector of manufacturing small jets and planes needs a lot of money for starters and incase of lack of time management a good innovation can be elapsed by occurring events leading to innovation of a product being back scheduled. A company needs a team of experienced engineers who are able to innovate better, efficient and faster planes compared to the planes made in the seventies. Security and safety measures should also be taken for consideration. (Sheehan 2003) The second problem of competition arises by the fact that in this field there are large companies that have been in the playing field for ages. For example large companies such as Boeing and Cessna have a large market and capital base thus for a company like Adam aircraft company to weaver that competition it needs to strategies its services and production levels. Adam Aircraft Company needs to increase their capital base in order to increase their competitive rates, by this they can materialize on specialization, increase innovation, increase and expand their delivery boundaries by involving charter companies. Conclusion For a successful company to affect its course it has to have a strategy that is well organized. In our case study the Adam Aircraft Company has that; it has specialized in an area that is perceived by many in the aviation sector as minor. But times are changing and the mode of having taxis and cabs on road will invade the air space and soon this industry of light weight jets will pronounce its vastness. As other big players continue to ignore the fertile grounds that small jets offer if innovation is instilled, their sector of heavy planes will be adversely affected by the competition it will experience in coming years. As more people venture for efficiency, more personalized services, and privacy that only the small jets and planes can offer. It is by the above fact that Adam aircraft company should take the pioneering role of establishing a company that will dully specialize in creating jets that have increased efficiency. By now their might be a negligent growth when it comes to usage of light weight jet but as civilization takes its course and sophistication improves the market will flourish for this kind of business.

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