Latécoère 2022

Abstract

The aeronautical industry has been drastically impacted since the beginning of 2020 by the Covid pandemic. Faced with their empty order book, Latécoère, a major player in the aeronautics industry from France providing innovative aerostructures and interconnection systems to leading customers such as Airbus, Boeing and Dassault Aviation has decided in emergency to completely rethink its strategy in order to find new avenues for growth. Guillaume Jaubert, the Head Office Defense & Governmental Affairs of Latécoère, was asked to lead the strategy for entering the Defense sector. He is wondering what strategy to adopt as the Defense sector is a market that is still quite unknown for Latécoère as they work in civil aviation. This case study introduces students to the aerospace and defense sectors, and the specificities of these industries in terms of product development and ecosystem. It will allow students to learn how to develop a diversification strategy, but also to contemplate if this is really the most appropriate strategy according to the context of the company and the industry, and to understand the risks and difficulties of such a strategy.The themes of this case are the Aeronautics / Aerospace and Defense sectors. This case is best suited for Business Strategy and Strategic Management classes. It may be relevant for Risk Management classes as well. The target audience are undergrade (either first or second year) and graduate / MBA business students. During the course, students will imagine being in Guillaume Jaubert's shoes and will think about the strategy to adopt to enter the Defense market. To do so, they will conduct an analysis of the Defense market as well as an analysis of the company's resources, capabilities and strategic objectives.

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