Company Analysis Report: Dassault Aviation
Table of Contents
1. Summary........................................................................................................................ 2
2. Introduction ................................................................................................................... 2
3. Products ......................................................................................................................... 2
4. Competitors ................................................................................................................... 3
5. Analysis.......................................................................................................................... 4
5.1. Product Life Cycle .................................................................................................................4
5.2. Boston Consulting Group Matrix ..........................................................................................5
5.3. PEST Analysis .......................................................................................................................6
6. Recommendations on Strategy....................................................................................... 7
7. Conclusions .................................................................................................................... 7
8. Bibliography................................................................................................................... 8
1
, 1. Summary
Dassault Aviation is an aviation company which have a wide range of products in the defence,
civil, and space sector. In terms of competition, the aviation sector is an oligopoly market.
However, in their Peer Group Comparison, Dassault Aviation has an operating revenue of
8,319,363 𝑈𝑆𝐷 which is higher than the average of 7,795,547 𝑈𝑆𝐷. According to the BCG
Matrix, the civil and space sector has a higher market growth rate relative to the defence
sector. Therefore, it has been recommended to focus on the other sectors. This is because
the civil and space sectors have more competition due to more technological advancements.
In response, Dassault Aviation needs to adapt in order to remain competitive. However, they
have managed to stay competitive in the changing space sector by making advancements in
collaboration with the ESA involving a product called IXV. Which helped differentiate
themselves from competitors. The second recommendation was to focus on environmentally
friendly products because according to the PEST analysis customers are becoming more
aware of the environmental consequences of aviation. Furthermore, this can be used as a
unique selling point to differentiate itself from its competitors.
2. Introduction
This report will focus and analyse Dassault Aviation as a company in the defence, civil and
space sector. Introducing the products of the company and how the company has become
successful, then looking at competitors to see how they compare. The Product Life Cycle and
Boston Consulting Group Matrix will then be used to analyse the products of Dassault Aviation
to see if their product portfolio is balanced and possible improvements. Next a PEST analysis
was conducted to analyse external factors which could affect Dassault Aviation. Which will
then help to provide recommendations on strategy that Dassault Aviation could implement
into future plans.
3. Products
Dassault focuses on aviation in three main sectors: defence, civil and space sector. This
provide a good mix of specialisation and diversification as Dassault is focusing on aviation but
has a wide range of products. Specialisation helps with creating good quality products while
diversification increases sales as Dassault can target more potential customers.
Figure 1 – shows the Falcon 50M, as a product in the defence sector. (Dassault Aviation, n.d.)
For the defence sector, the Falcon family over the course of 50 years have sold more than
2,250 aircraft in 80+ countries, with more than 16 million flight hours. Moreover, the military
and governmental services use almost 10% of Falcon aircraft (Dassault Aviation, n.d.). The
2
Table of Contents
1. Summary........................................................................................................................ 2
2. Introduction ................................................................................................................... 2
3. Products ......................................................................................................................... 2
4. Competitors ................................................................................................................... 3
5. Analysis.......................................................................................................................... 4
5.1. Product Life Cycle .................................................................................................................4
5.2. Boston Consulting Group Matrix ..........................................................................................5
5.3. PEST Analysis .......................................................................................................................6
6. Recommendations on Strategy....................................................................................... 7
7. Conclusions .................................................................................................................... 7
8. Bibliography................................................................................................................... 8
1
, 1. Summary
Dassault Aviation is an aviation company which have a wide range of products in the defence,
civil, and space sector. In terms of competition, the aviation sector is an oligopoly market.
However, in their Peer Group Comparison, Dassault Aviation has an operating revenue of
8,319,363 𝑈𝑆𝐷 which is higher than the average of 7,795,547 𝑈𝑆𝐷. According to the BCG
Matrix, the civil and space sector has a higher market growth rate relative to the defence
sector. Therefore, it has been recommended to focus on the other sectors. This is because
the civil and space sectors have more competition due to more technological advancements.
In response, Dassault Aviation needs to adapt in order to remain competitive. However, they
have managed to stay competitive in the changing space sector by making advancements in
collaboration with the ESA involving a product called IXV. Which helped differentiate
themselves from competitors. The second recommendation was to focus on environmentally
friendly products because according to the PEST analysis customers are becoming more
aware of the environmental consequences of aviation. Furthermore, this can be used as a
unique selling point to differentiate itself from its competitors.
2. Introduction
This report will focus and analyse Dassault Aviation as a company in the defence, civil and
space sector. Introducing the products of the company and how the company has become
successful, then looking at competitors to see how they compare. The Product Life Cycle and
Boston Consulting Group Matrix will then be used to analyse the products of Dassault Aviation
to see if their product portfolio is balanced and possible improvements. Next a PEST analysis
was conducted to analyse external factors which could affect Dassault Aviation. Which will
then help to provide recommendations on strategy that Dassault Aviation could implement
into future plans.
3. Products
Dassault focuses on aviation in three main sectors: defence, civil and space sector. This
provide a good mix of specialisation and diversification as Dassault is focusing on aviation but
has a wide range of products. Specialisation helps with creating good quality products while
diversification increases sales as Dassault can target more potential customers.
Figure 1 – shows the Falcon 50M, as a product in the defence sector. (Dassault Aviation, n.d.)
For the defence sector, the Falcon family over the course of 50 years have sold more than
2,250 aircraft in 80+ countries, with more than 16 million flight hours. Moreover, the military
and governmental services use almost 10% of Falcon aircraft (Dassault Aviation, n.d.). The
2