DIANA WANG, JIAO CUI, PANCHO DASKALOV, STANLEY IGWEDIBIA, SUMEI

ZHENG, TEJA REDDY CHINNAM, YAN HUANG

TEAM 1

●Founded: 2002

●Founder: Elon Musk

●Product: Design, Manufacture and launch advanced rockets spacecraft.

Introduction

Progress

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Manufactures 70% of the parts

Signed 40 launches contracts

NASA awards SpaceX $1.6 billion contract to bring cargo to the ISS

Signed contract with NASA to send humans to space for low cost

Can SpaceX get the contract?

NASA’s commercial contracts from2018-2020

To resupply the InternationalSpace Station

SpaceX + 4 other competitors

NEWS

Competitors

Application Strategies

Add a Low-Cost Business

Differentiate your offerings

Switch to Selling Solutions

Become Exclusively a

Low-Cost provider

Low Profit Margin

Low Credibility

Perception of Quality

Sustainability of low cost business

Criticism of Low-Cost Framework

Challenges

● Limited resources and experience

● Reliability

● Scalability

● Reusability

● High innovation costs

The Road Ahead

Short-Term Long-Term

• Maintain low-cost

sustainability

• Open plants in

developing countries

• Increase barriers to

entry

• Relying on Core

Competencies

• Increase production

• High protection of

intellectual property

• Creating Switching

Cost

Thank You!Q&A

THANK YOU!

Reference

● http://www.spacex.com/

● Nirmalya Kumar, 2006, Strategy to fight low-cost rivals, Harvard business review

● https://www.youtube.com/watch?v=3h4G2Avq2TQ

● http://www.vox.com/cards/private-space-flight/spacex-dragon

● https://hbr.org/2013/04/what-spacex-can-teach-us-about

● http://qz.com/153969/spacex-just-made-rocket-launches-affordable-heres-how-it-could-make-them-downright-cheap/

Competitive Advantages

• Low Cost Advantages

• Technology advancements

• Government Support

• 70% of the materials made in-house

• Eliminating the middle man

• Hiring temporary workers

Supply Chain Saving

Industry Revenue

Other Competitors

●Arianespace owned by European union countries

Launch Cost $200mn

●Asked governments for more funds in order to compete with SpaceX

●Had 50% market share in 2004

●Have backlog launches of 38 satellites by 2014

Clients

● United States Air Force● SES S.A.● Satelites Mexicanos● NASA

$1.6 Billion contract with SpaceX to resupply cargo flights to the ISS 50 scheduled flights totaling another $5 Billion in contracts

Granted SpaceX $440 million to equip its equipment to be crew-ready

Vision

●Send People to mars for $200000

●Create civilization on Mars

●Send cargo’s for $5mn- $7mn- in 2 years

●Make availability for everyone

How big is the market?

●There are total 2271 Satellites

●Russia has 1324 Satellites

●U.S has 658 Satellites

●Rest of the world 289 only Satellites

What is sent as cargo?