Russia Aerospace & Defense Industry - Porterís Five Forces Strategy Analysis

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Sep 2012 20 Aruvians Rsearch ASDR-35902

Russiaís aerospace and defense industries have belatedly made the transition from the Ďcost no objectí Soviet era to the economic realities of the global market. The difficult transition years of the 1990s, when once assured markets in former spheres of influence declined and domestic spending plunged, appear to have been overcome. Russiaís aerospace and defense industries are back to competing at an international level.

Aruvian's R'search analyzes Russia Aerospace & Defense Industry in Michael Porterís Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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