By Kishore Chagamreddy, Peter Addy, Ian Jensen, Darrell Member, Bindu Malik, Misty Caruth and Maggie Gu
“Aerospace is a leading global supplier of aircraft engines, avionics, and related products and services for aircraft manufacturers, airlines, aircraft operators, military services, and defense and space contractors” (Honeywell 2009 Annual Report). This statement by Honeywell sounds like the same mumbo jumbo that customers and investors read from a company. All for-profit organizations strategize in some way to be the leader in their industry. What is Honeywell’s recipe?
A favorable attribute of the aerospace industry that benefits Honeywell is the high barriers to entry into the market. This area is a recognizable strength for Honeywell and the company uses it to maintain profitability.
Initiatives this past year have shown that Honeywell is winning in the marketplace. Their pursuits into a customer focused portfolio have created over $100B in OEM wins. Their selection by Commercial Aircraft Corporation of China, Ltd (COMAC), a huge win to be the fly-by-wire flight control provider for the new C919 single-aisle commercial, is an additional $11B for the company. They’ve managed to obtain over 90% of the airline aftermarket selections. And these are just the story board wins for Honeywell.