General Dynamics is a market leader in mission-critical information systems and
technologies; land and expeditionary combat vehicles, armaments and munitions;
shipbuilding and marine systems; and business aviation.
Formed in 1952 through the combination of Electric Boat Company, Consolidated
Vultee and other entities, the company grew through internal development and
acquisitions but was largely dismantled in the early 1990s through the sale
of all of its divisions except Electric Boat and Land Systems. The company's
present composition is the result of a series of acquisitions begun in 1995.
At that time, General Dynamics began an expansion of its two core defense businesses,
broadening its product lines through the acquisition of other shipyards and
combat vehicle-related entities. The company also added information technology
products and services, particularly in the command-and-control, communications,
computing, intelligence, surveillance and reconnaissance (C4ISR) area, and business-jet
aircraft and aviation support services to its offerings.
General Dynamics is organized into four primary business groups: Information
Systems and Technology, Combat Systems, Marine Systems and Aerospace. These
groups design, develop, manufacture and support leading-edge technology, products
and services for use across the spectrum of military operations. From nuclear
submarines to Stryker armored infantry carriers, ammunition to targeting systems,
tactical Personal Digital Assistants to combat search-and-rescue radios, General
Dynamics supports the combat warrior on land, at sea, in the air and on the
network. The company's Gulfstream business-jet aircraft serve business travelers
around the world, as well as government customers as special mission platforms
for intelligence, surveillance, reconnaissance and transport.
In addition to the four principal business groups, a small Resources group provides
construction aggregates and operates coal mines.
COMPETITION
The company's ability to compete successfully depends on the technical excellence
and reliability of its products and services, its reputation for integrating
complex systems, its leadership team's successful management of the company's
businesses and customer relationships, and the cost competitiveness of its products
and services. The company competes in two separate markets: defense and business-jet
aircraft.
DEFENSE MARKET
The defense market is served by numerous domestic and foreign companies that
offer a range of products and services and compete with the company for many
of its contracts. On occasion, the company is involved in subcontracting relationships
with some of these competitors. The key competitive factors in this market are
technological innovation, low-cost production, performance and market knowledge.
The Information Systems and Technology group competes with a broad range of
entities, from large defense companies to smaller niche competitors with specialized
technologies. The Combat Systems group competes in a market composed primarily
of large domestic and foreign entities. The company partners with some of these
entities from time to time, and currently is in a teaming arrangement with another
U.S. defense contractor on the manned vehicle portion of the FCS program. The
Marine Systems group operates in a market with only one other primary competitor,
Northrop Grumman Corporation; the company is also teamed with that competitor
on several programs, including the Virginia-class submarine construction contract.
The Navy's LCS program has increased competition to now include other large
aerospace companies seeking opportunities as shipbuilding prime contractors.
BUSINESS-JET AIRCRAFT MARKET
Competition in the business-jet aircraft market generally is divided into segments
based on the cabin size, range and price of the aircraft.
CUSTOMERS
The company's primary customer is the U.S. government, particularly the Department
of Defense.
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