Search Results

In any new aircraft development program there are many important design decisions that determine profitability potential. The key to making new aircraft profitable is to design features that will command more money than the cost to provide them within the market's ability to absorb them. The business model in this paper shows how to predict or find: 1) the costs to provide various aircraft features; 2) the values that aircraft buyers place on these features; 3) the amount of money that buyers have to commit to them, 4) the open spaces in the market in which to place new designs and 5) the predicted profits from new designs. In this process, this paper extends previous work on the law of value and demand, which states that attributes determine value; value determines price; and that price determines demand. This four-dimensional, non-negative system hosts a business model that describes the features needed to enable aircraft designs to go from concepts to profitable assembly lines.

The increasing complexity of aerospace products and programs and the growing competitive pressure is facilitating the aggregation of small, medium and large enterprises of certain geographical regions into more integrated and collaborative entities (clusters). Clusters are by their same nature formed by heterogeneous companies, with huge differences not only in size but also for their core competences: such a diversity is a strength of the cluster, but it also increases its complexity. The purpose of this paper is to describe a benchmarking methodology that can be adopted to assess the performances of companies belonging to a cluster from different perspectives: economics and financials, competitive differentiators, specific know how, business strategies, production and logistic effectiveness, quality of core and supporting processes.