Strategic analysis of an air traffic management systems company

Raytheon Company is a provider of integrated electronics products primarily in the defence arena. Its radar and sensory equipment expertise provided a natural entry into the Air Traffic Management Systems domain and an ATMS division was formed to pursue commercial endeavours. This paper provides a strategic analysis of this ATMS division. It focuses upon the ATMS market and its evolution, the division's products and services, its generic strategy, and its alignment with Raytheon core competencies. Key issues facing the division are presented and analyzed within the context of both the ATMS industry and the company. On the basis of internal, market and industry analyses, recommendations are made from the perspective of best leveraging ATMS division strengths. Raytheon Company has several divisions specializing in integrated defence systems and a commitment to participating in Homeland Security initiatives. ATMS product evolution and civil 1 military convergence presents opportunities to leverage upon economies of scope and scale. These opportunities are also discussed in an ATMS division context.