STRATEGIC TECHNOLOGY ROADMAP

FOR

Carles DebartClaire UtrechtEuan Granger

Javier Sanchez QuirosRadoslava Tosheva

Ying Li

Founded in 2002 by

Elon Musk - South African born entrepreneur - California-based venture capitalist - Co-founder of PayPal and CEO of many other companies:

Introduction and company background

• Has the goal of privatising space transportation

• Innovative designs and quality in-house manufacturing

• Became the first (2010), and still only, privately owned company to return a spacecraft from low-earth.

• Their Dragon spacecraft docked with the International Space Station (ISS) in 2012

• SpaceX now holds a $1.6bn contract with NASA

Introduction and company background IICompany vision:

“To revolutionize space transportation and ultimately make it possible for people

to live on other planets.”

Political & Legal

Horizon scanning – PESTLE Analysis I

- Bush administration ended the support for NASA space shuttle programme

- Obama’s programme still not defined whether supporting private or public funding

- Failures like challenger explosion, SpaceX would be held liable

- All the contracts to have the liability issue taken seriously into consideration

- Contract and funding awards for NASA to undergo congressional approval

Economic

Horizon scanning – PESTLE Analysis II

Effects of the global recession

Continuing economic uncertainty

Space travel seen as an unnecessary expense

Less money available from government funds

NASA to reduce their budgets

Move towards private funding

Socio cultural

Horizon scanning – PESTLE Analysis III- USA citizens proud of their

space achievements

- Space industry left great

technological advances to

human beings- New horizons

for space traveling are welcomed - Buzz Aldrin and

Steve Musgrave fighting against

commercialisation of space

- Rethink on strategic direction

of NASA

Technological & Environmental

Horizon scanning – PESTLE Analysis IV

Reusable spaceships to be

developed

Technologic

al-Space

exploration is highly

dependent on R&D

-Cheap and more

environmentally sustainable

trips

Environment

al- Increased

focus on sustainability on industry

-Show steps to meet green criteria is a

must

Industry competitors [Moderate]

Horizon scanning – PORTER’s 5 forces I

Commercial Governmental Space tourism

Threat of new entrants [Low] - High level of capital to get started in the industry- Fast-paced technological advanced require high investment- Human resources are hard to find for space industry

Bargaining power of buyers [Low] - NASA prefers American companies for supply- SpaceX is the only American company to be approved by Congress as a NASA supplier

Bargaining power of suppliers [Moderate]- Very high standards of quality to be met

Threat of Substitutes [Low]- No substitutes for space vehicles at the moment

Horizon scanning – PORTER’s 5 forces II

Internal analysis – Operating model

SimplicityLow cost

Reliability

Inter-organizational communicatio

n

Good working

environment

Speed decision making

Reduced lead time

Eliminate subcontractors

Internal analysis - Deployment of resources and vertical integrationby

Improvement in productivity

Reduction of design-to-manufacturing time on 71%

More reliable updates

Overall design-manufacturing flows more smoothly

SpaceX manufactures all their parts in house

Reduced costs

Tighter control of quality

Tight feedback loop between design and manufacturing teams

Internal analysis – Scale and scope

“Engineer to order”

production

Competes in

commercial markets

Competes in

governmental markets

Costs are spread over

multiple users

SpaceX is pioneer

in applying

the economy of scale in the space industry

Dragon

Falcon 1

Falcon 9Falcon Heavy

Market approach – products in function of payload

Internal analysis – Profit formulaIncome: - Profitable and positive cash flow

- 81 launches planned until 2017- 2.4 Billion dollars of income planned for 2017

OPEX: calculated as 0.7% operative cost for each launch.

CAPEX: calculated as 228 Million $.

R&D: SpaceX reinvents 80% of its annual profits in R&D

N. launches Incomes OPEX CAPEX R&D Profit2013 9 $856.000.000,00 $599.200.000,00 $228.623.040,00 $22.541.568,00 $5.635.392,002014 12 $1.063.000.000,00 $744.100.000,00 $262.916.496,00 $44.786.803,20 $55.983.504,002015 16 $1.456.000.000,00 $1.019.200.000,00 $302.353.970,40 $107.556.823,68 $134.446.029,602016 21 $1.892.800.000,00 $1.324.960.000,00 $347.707.065,96 $176.106.347,23 $220.132.934,042017 27 $2.460.640.000,00 $1.722.448.000,00 $399.863.125,85 $270.663.099,32 $338.328.874,15

Total $7.728.440.000,00 $5.409.908.000,00 $1.541.463.698,21 $621.654.641,43 $754.526.733,79

Internal analysis – Customer value proposition & unique selling point

Customer value proposition

Reliability proven with more than 30 successful missions

Tailoring of services

Quick development

Tight control over quality and cost

Re-usable launch vehicles

Unique selling point

Individualised customer care

Commercial Space Flight

Best reliability in space industry

Quick delivery

Cost savings

Internal analysis - Key performance indicators

Number of Clients/Number of contracts (per year)

Number of launches (per year)

Profitability

On-time delivery

Overall equipment effectiveness

Employee turnover

Responsiveness

SpaceXKPI’s

1

2

3

4

5

6

7

Technology roadmap

Strategy map

Recommendations

Compete for contracts in other countries

Investigate the suborbital market

Focus on less heavy and more frequent launches

Assess technology capabilities for other industries

Develop sustainable vehicles and greener launch systems

1

2

3

4

5

Near-midterm

future

End of presentation

Thank you for

your attention

Any questions

?