Careers at Lockheed Martin
Lockheed Martin’s mission is to solve complex challenges, advance scientific discovery, and deliver innovative solutions to help its customers keep people safe.
Lockheed Martin is a security and aerospace company. It operates five reportable business segments:
Aeronautics – Engaged in the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Accounted for 34% of net sales in 2015.
Information Systems & Global Solutions (IS&GS) – Provides advanced technology systems and expertise, integrated information technology solutions, and management services across a broad spectrum of applications for civil, defense, intelligence, and other government customers. Accounted for 12% of net sales in 2015.
Missiles and Fire Control (MFC) - Provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support and integration services; manned and unmanned ground vehicles; and energy management solutions. Accounted for 14% of net sales in 2015.
Mission Systems and Training (MST) - Provides design, manufacture, service, and support for a variety of military and civil helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defense systems; radar systems; the Littoral Combat Ship (LCS); simulation and training services; and unmanned systems and technologies. Accounted for 20% of net sales in 2015.
Space Systems - Engaged in the research and development, design, engineering, and production of satellites, strategic and defensive missile systems, and space transportation systems. Accounted for 11% of net sales in 2015.
Glenn L. Martin was a salesman for Ford cars. In 1912, encouraged by Orville Wright (one of the Wright brothers), he built a plane in a rented church, using an innovative design. Shortly afterwards he founded the Martin Company to manufacture small planes. He hired aircraft expert Donald Douglas to help him design and develop new products, one of which they sold to the U.S. Army.
Over the next two decades, their range expanded with the production of various types of military aircraft, including a twin-engine bomber. Then Douglas left in 1929 to form his own firm. Martin took a leap, developing commercial passenger planes with funding from Pan Am. Despite this, his war planes remained in high demand, being used heavily in World War II and the Korean War.
The firm faced stiff competition from larger competitors such as Lockheed, which was also founded in 1912. It responded by merging with American-Marietta Corporation in 1961 to found Martin Marietta. It spent the next two decades diversifying further, and by the 1980s it was active in the design and production of electronic communication, energy, and information systems.
By 1994 Martin Marietta was the third-largest defense contractor. Looking to increase its footprint, it reached an agreement to merge with Lockheed, the second-largest contractor, in 1995. The federal government took several months before approving the union. The result was the world’s largest competitor in the space, Lockheed Martin. The firm primarily serves the U.S. government.
Benefits at Lockheed Martin
Business model of Lockheed Martin
Lockheed Martin has a niche market business model, with a specialized customer segment. The company targets its offering at the U.S. government (which accounted for 78% of its business in 2015), but also serves U.S. commercial customers and international military and commercial clients.
Lockheed Martin offers three primary value propositions: innovation, accessibility, and brand/status.
The company has embraced innovation throughout its history; its milestones include the following:
- The first power-operated revolving gun turret, a key feature in World War II aircraft
- The first FAA-approved flight data recorder, now standard equipment on commercial planes
- The first weather picture taken from space, taken by the TIROS satellite
- The first digital sonar capability, which enhanced undersea warfare capability
- The first passive towed sonar array, which detected submarines
- The first surface-to-surface missile ever fired by the U.S. Army during combat
- The first Littoral Combat Ship, designed to protect U.S. coastal waters
The company creates accessibility by providing a wide variety of options. It manufactures products in the aerospace, defense, security, and advanced technology industries. It has acquired numerous firms during its history, which has increased the diversity of its portfolio. Between 2014 and 2016 alone, it purchased Sikorsky Aircraft (a helicopter manufacturer), Systems Made Simple (a health IT solutions provider), Zeta Associates (an information provider for the intelligence community), and Industrial Defender (a cybersecurity solutions provider). Lockheed Martin has also increased access by forming alliances with competitors in order to provide enhanced solutions for its customers.
The company has established a powerful brand due to its success. It is the largest defense contractor in the world, with $46.1 billion in revenues in 2015. It maintains over 98,000 employees working in more than 590 facilities in all 50 U.S. states, as well as at locations in 70 foreign nations. Lastly, it has won many honors, including the prestigious Collier Trophy, which it has received six times.
Lockheed Martin’s main channel is its business development team. It also sells products through original equipment manufacturers and franchised and authorized distributors. The company promotes its offering through its social media pages and participation in expos, summits, symposiums, trade shows, and conferences.
Lockheed Martin’s customer relationship is primarily of a personal assistance nature. Once clients have purchased its product, it provides focused training and logistics support to ensure comfort.
Lockheed Martin’s business model entails designing, developing, and manufacturing its products for its clients.
Lockheed Martin’s key partners are the suppliers that provide the parts for its products. The company seeks suppliers that have proven experience, offer complementary commodities, and have a strong financial position. It maintains Supplier Wire, a portal with helpful resources for these firms.
The company also partners with OEMs and franchised/authorized distributors to sell its products; that said, its agreements are typically long-term, leaving few opportunities for new third parties.
Lastly, the company operates Lockheed Martin Ventures, a program that makes strategic investments in startups that develop cutting-edge technologies in its core markets and in new areas. The partners receive access to its engineering staff, technologies, and business relationships.
Lockheed Martin’s main resources are its human resources, particularly the engineering employees who design and develop its products.
The company also has important physical resources in the form of manufacturing plants, warehouses, laboratories, service centers, and other facilities in 590+ locations, mostly in the U.S. Lastly, it places a high priority on IP and owns numerous patents.
Lockheed Martin has a value-driven structure, aiming to provide a premium proposition through frequent product improvements.
Its biggest cost driver is cost of products, a variable expense. Other major drivers are cost of services, a variable expense, and R&D costs, a fixed expense.
Lockheed Martin has two revenue streams: product sales, which accounted for 78% of its revenues in 2015, and service sales, which accounted for 22% that year.
info: Marillyn earned a B.S. in Business Administration and an M.A. in Economics at the University of Alabama. She previously held several senior roles at Lockheed Martin, including Chief Operating Officer and EVP of its Electronic Systems business area.
info: Bruce earned a BBA in Finance from the University of Michigan and an MBA in Finance from the University of Texas at Arlington. He previously served as VP of Finance and Business Operations for Lockheed Martin Aeronautics Company.
info: Rick earned a Bachelor’s degree in Electrical Engineering Technology from the DeVry Institute of Technology and a Master’s degree in Business Administration from the University of Denver. He previously served as President of Lockheed Martin’s IS&GS unit.
info: Orlando earned a Bachelor of Science degree in Mathematics from Fairfield University and an MBA from the University of Maryland. He previously held several positions at Lockheed Martin, including President of Lockheed Martin Mission Systems & Sensors.
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