Adam Aircraft

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  • Topic: Adam A500, Adam A700, Adam Aircraft Industries
  • Pages : 5 (1717 words )
  • Download(s) : 287
  • Published : May 6, 2012
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Introduction:
This paper is about a company called Adam Aircraft that manufactures designs and ultimately intends to sell aircrafts in the aerospace industry. Rick Adam, a successful entrepreneur that has a passion for flying, established the company in the year 1993. Rick Adam identified a need in the market through analysis and research by various means. His passion for flying was fueled by his father that served in the US Air Force. Pilots and computer engineers socially surrounded Rick, which gave him an insight to knowing what the customer needed. According to the case, Rick described himself as a raging incrementalist in which he preferred to innovate one-step at a time. That was the drive behind his semi-conservative approach to the market because he believed the chances of failure could have dangerous effects on his company, which he personally funded at start. The market for airplanes has high barriers of entry and needs an enormous amount of capital because of the strict and expensive policies dictated by the authorities. Rick acknowledged the pitfalls of being a manufacturer in the industry, those included problems with designing, building, financing, and the long certification process. He also analyzed why many companies had tried to enter the market and failed, and why a few others succeeded. Those processes of marketing research lead Rick to discover new ways of approaching the aerospace industry. The company’s mission statement was not mentioned in the case study. In considering the working environment and the market in general, Rick needed to dictate a mission statement for his company that would lead to a better evaluation of the company’s progress. The mission statement must address:

1. Efficiency
2. Quality
3. Customer satisfaction
4. Good Working conditions
5. Effectiveness
6. Customer Satisfaction
Objectives:
1. The selling of 50 A500 jets, which is the required number for the company to break-even in terms of sales. 2. Precision, The Company must base deadlines to motivate workforce. 3. Perfection, in designing, manufacturing, and in the safety of airplanes to avoid the consumption of time in the process of being certified by the FAA. 4. A sound-marketing strategy that could better position our A500 twin-piston and A700 jet. Company Overview

The management team:
Headed by Rick George Adam, he managed to gather a team with a solid background about the aviation industry. The team had the characteristics/capabilities needed to make the companies products come to life. Ricks computer background enhanced his ability to use the technological factor to create a competitive advantage, which helped the company stay ahead of their competition. Product viability/appeal:

1) Is the A500 twin-piston fuel efficient, owner-flown, well handled and uniquely designed aircraft. It was produced out of Ricks love for flying planes. Price tag: 895,000$ 2) The A700 is a commercially used jet that is easy for traveling, a lightweight, and well designed to attract the eyes. Price tag: 1.995 million $. Market Demand:

According to the facts presented in the case study, the market was in desperate need of a new innovative product. The only competition for Adam Aircraft was an aircraft introduced in the year 1961. The markets statistics also proved that many companies have tried to enter the market and failed because some companies proceeded technology while others preceded it. That factor was not alone; also, the time factor as well as high costs were the main causes of the high barriers of entry in the market. Financing:

Since the company started off, the lack of capital created a handicap for a short period. Which was later supported by Goldman sachs. In count, Rick had already previously pumped money from his personal account and he was not willing to spend all his fortune over the company because then not the only company had a risk of...
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