A strategic analysis of a systems engineering business unit

The Earth Observation Business Area of MacDonald Dettwiler is considering how to grow its revenues in accordance with the corporate parent's growth objectives. Demand for ground station systems is growing over the near-term to service increasing defence needs, particularly in the US. However, traditional customers are receiving less funding than in the past. Additionally, the US market is increasingly regulated. Competition and the collaborative agreements amongst suppliers continue to be stable, although recent years have seen some industry consolidation. EO's competitive advantage lies in project execution, data calibration and product generation technology and business development expertise. BA revenues have been flat over the last decade and have afforded few opportunities for staff development. Recommendations include the establishment of a US base to pursue US business leaving the Richmond operation to service the rest of the world. Additionally, addressing HR issues and reorganizing the corporate parent are recommended.