Aerospace and defense industry analysis shows that “staying the course” with the same strategies and business models may not fly much longer.
Why do so many aerospace and defense (A&D) companies “stay the course” when faced with disruption, sticking with strategies and business models designed for a different era? New Deloitte research makes a compelling case for change. We found that A&D companies that adapted their strategies and business models significantly outperformed those that didn’t.
Eras of aerospace and defense
Deloitte analyzed the performance of the 100 largest companies in the A&D industry over the last 25 years. We found that companies who adapted their strategies and business models to fit changing market dynamics outperformed those that didn’t by up to seven times.1 Yet up to 50 percent of A&D companies could be classified as “staying the course.” These companies will have to adapt their strategies and business models to keep pace with their more adaptable peers.