|Quoting KSUpilot (Thread starter):|
Many say LM can accomplish anything they put their mind to. And they already a doing a good job beating Boeing in terms of military aircraft, the EELVs, and they just won a big contract for the Orion CEV.
Although I haven't done much work with the feds, based on what I've seen on both sides of the fence with state/local government agencies... If you can make a profit (and sustain your business) dealing exclusively with the a government agency...It may not be worth the extra hassle/incremental revenue of dealing with private industry.
From what I understand LM
(I am making the assumption you mean Locheed Martin) does a very good job of catering to many of the federal government's needs...including ones that you may not associate with LM
. They seem to be quite sucessful at it.
Absent a hole that they could clearly and easily fill, why deal with the private sector? With the government you have one entity with uniform policies/procedures (cough. yeah, right. cough.) buying large quantites and that will never run out of money in the business sense.
In the private sector, you're doing battle with other more established competitors for a finite market share. You have to be sensitive to price, and you have to woo multiple buyers (airlines), and perhaps deal with the pissing between them ("We want delivery slots now", "Why is XYZ Airlines paying less...?"). Among other things there are higher costs of selling each item (because instead of one person buying 500 of something, you have 10 airlines buying 50 of someting...each with individual contracts, policies, sales teams/meetings...and policies.). Oh, and airlines-like most publically traded companies--tend to be much more cost-sensitive than the government.
If I were in LM
's position, I don't think I would want to screw up a good thing by diverting resources to a market that's already well served-and more competitive.
But that's just my $0.02333- and I have no formal business education.
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