Rockwell Collins - Competitive Intelligence

Abstract

The objective and scope of various sections of this Competitive Intelligence Report has been discussed below.

Company Summary

Rockwell Collins is an industry leader in aviation and space communications, providing radios, flight controls, and satellite transmission equipment to both commercial and government customers. In addition to the production of communications equipment, COL provides repair, overhaul, and training services and the sale of aftermarket parts.

Major Competitors

Rockwell Collins operates in a highly competitive environment. Principal competitive factors include total cost of ownership, product and system performance, quality, service, warranty and indemnification terms, technology, design engineering capabilities, new product innovation and timely delivery.

The Company competes worldwide with a number of United States and international companies, including approximately ten principal competitors in each of its Government Systems and Commercial Systems businesses.

For the purpose of this report, we have compared Rockwell Collins with two of its closest competitors, BAE systems and Raytheon.

Key Business Strategies

Rockwell Collins,BAE Systems,Raytheon

Comparative SWOT Analysis

• Strengths: Market Leader Strategic Acquisitions
• Weaknesses: Dependence on US Government
• Opportunities: In-flight Information Systems - A Growth Opportunity
• Threats: Loss of Regional Jet Avionics Share Risks Related to Fixed-price Contracts

• Strengths: Dominant Position BAE' s Position in the US
• Weaknesses: Dependent on a Small Number of Large Contracts
• Opportunities: Naval Consolidation in the UK
• Threats: Legal Investigations

• Strengths: Market Leadership Air-to-Air Missile Market Dominance
• Weaknesses: Slowdown in Key Business Lines Over Dependence on US Government
• Opportunities: Strong Cashflow Leads to Acquisition Opportunities Opportunities in Non-U.S. Security Market
• Threats: Changes in the DOD Budget Missile Defense

Comparative Financial Analysis

Rockwell Collins has indicated its revenues could reach $4.75 billion for 2008, despite an approximate $50 million drop-off in In-flight-entertainment-related business. Analysts estimates 10% growth, with Commercial up 12%, driven by OE volumes (787 and business jet). Organic growth in the Government Systems group looks to be in the 6% range, with a point from recent acquisitions.