1. Jocelyn Bush
Project Manager
Bianca Williams
Market Research
Economic Business Analysis Consulting Services
Engineering Design
Growth
Initial Product Proposal
August 26, 2010

2. Provide initial suggestions of products for Jabil Design
Services to target based on preliminary results of market
research within Defense and Aerospace market segments
Communicate plan of action to complete the economic
business analysis required
Objective

3. • Business Case Hypothesis
• Industry Description
• Secondary Research
• Procurement by Segment
• Market Analysis
• Key Players
• Target Market Revenues
• Target Market Customer Count
• Target Product Market
• Product Images
• Preliminary Analysis
• External Factors
• Recommendation
KeyTopics

4. Assumptions
Target products technically mature
Time to market: by 2012 – 2013
High growth potential for target areas
identified by
DOD funding allocated in out-years
Correlation to target customer list
Business Case Hypothesis

5. Defense electronics and
military aerospace are also
covered by the defense
segment; the aerospace
segment includes civilian
planes and space equipment
but excludes military
aircraft and related items.
The aerospace and defense
market is deemed to be
revenues accrued by
manufacturers from civil and
military aerospace and
defense procurements. This
only includes equipments,
parts and maintenance
(EPM).
Industry Description

6. In 2014 the US aerospace and defense market is forecast to have a
value of $413.6 billion, an increase of 12.1% since 2009 with a 5
year CAGR of 2.3%
Market Segmentation I
Defense segments account for 77% of total market value
Market Segmentation II
Aerospace segments account for 49.6% of total market
value
Secondary Research

7. Secondary Research Cont’d
FY11 Defense Budget
Request
$708.2 bn
FY11 Budget Amount for
Major Procurement and
R&D focus areas: $189bn
(60% Procurement, 40%
R&D)

8. Major Procurement and R&D focus areas:
 Army Combat Force Modernization Programs ($3.2B procurement)
 Launching of the Ground Combat Vehicle (GCV) program
 Replacing of the M-1 (Abrams)
 Replacing of the M-2 (Bradley)
 Navy Force Structure and Ship Building Plans ($15.9B Procurement)
 Next Generation Ballistic Missile Submarine SSBN(X) ($7.9B/per Procurement)
 Resumed production of DDG-51 Destroyers ($3B/per Procurement)
 Ballistic Missile Defense ($8.6B Procurement & R&D)
 Aircraft Programs
 F-35 ($10.5B Procurement & R&D)
 F-35 Alternate Engine ($2.5B R&D)
 KC-X ($863.9M R&D)
 Military Construction ($18.7B Procurement & R&D)
Procurement by Segment
Defense FY2011 Authorizations and Appropriations (by CRS)

9. Market Analysis
Revenue Growth Competition Lifecycle
Stage
Groundbased
Electronics
HIGH Decline
Network
Centric
Systems
$6.1bn Growth
Real-Time
Communicati
on
$15.6bn 4.8% MEDIUM Mature
Homeland
Security
$50bn 12% HIGH Mature
C4ISR $8.8bn 2.3% HIGH Growth
Revise to include:
• Defense / Procurement and R&D Specific data for HLS
• Forward looking

10. End-user demand for
integrated solutions has
reached an all-time high as
government agencies and
private sector security firms
are increasingly opting for
comprehensive and
integrated systems over
stand-alone products.
At the macro level, a gradual
shift in defense spending
patterns can be discerned. In
response to the asymmetric
terrorist threats, the emphasis
appears to have shifted to high-
tech intelligence equipment,
replacing demand for
conventional heavy armor.
Market Analysis
-Zacks Equity Research -Frost & Sullivan

11. Highest levels of capabilities
AFRL
BAE
Cobham
DRS
Harris
ITT Electronics
General Dynamics
Raytheon
Goodrich
Key Players

12. Target Market Revenues
By Customer and Division

13. Target Market Customer Count
16 7 18 23 15

14. Target Customer Products
Ground Based Electronics

15. Target Customer Products Network
Centric Systems and Real-Time Communications

16. Target Customer Products Homeland
Security

17. Target Customer Products (cont’d)

18. Target Customer Products (cont’d)

19. Least Manufactured Products
Cargo Screeners
Weapon sights for law enforcement
Biometrics
Marine and Power Systems
Most Manufactured Products
Electronic Sensors
Avionics, displays and specialty products
Microwave, RF, SATCOM, and Antenna
Products
Sensors, Guidance, Navigation and
simulation
Target Product Markets

20. Product Images All-Glass Cockpit Smart Multi-Function Display (NGC); Avionics
CEAFAR Minor War Vessel Radar (NGC); Maritime RadarsTransportable Multi-Domain Surveillance System (Raytheon); Homeland Security
Advanced Airborne reconnaissance system (BAE); Sensors

21. Preliminary Analysis
Updates
Government Standards
-Facility Codes
Current Capabilities
Key Players Internal Procurements
Long Standing Gov't Contracts
Saturated Market
Product Patents
Time for prodcust development
-Technological Capabilities
Research & Development
Aerospace & Defense
Barriers to Entry

22. Seller Power & Analysis
A & D Companies
Moderate:
Options for Manufacturers
Facility Capabilities
Buyer Power & Analysis
Government Agencies
High:
Substitute Products
Unique Product and services needed
External Factors

23. Cross reference facility capabilities with government
standards for initial overhead costs
Diversify risk by producing both popular and least
manufactured products based on capabilities and ROI
Create time table for research & development, product
manufacturing and distribution
Secure Government contracts for FY 2012
Recommendation

24. Questions?