Rolls Royce Engine Company
- A brief overview of the Rolls-Royce Engine Company, including details on when it was founded, location, mission and vision statements, key competitors, and the industry in which the company is based.
- A thesis statement for the essay: Gives details of what the rest of the essay will look like. For example, mentioning that the essay will undertake a SWOT analysis of Rolls-Royce, Porter’s five forces analysis, and core competencies of the company.
Background of the global engine industry
- A review of the global engine industry, including its key players, such as Rolls-Royce, General Electric (GE), and Pratt & Whitney (Ganston, 2006), and the respective share of the market for each of these three dominant players.
Analysis of the Global Engine Industry
- A description of what SWOT (Strengths, Weaknesses, Opportunities, and Threats) entails.
- The importance of conducting a SWOT analysis for a company.
These are the unique attributes of Rolls-Royce that gives the brand an advantage over its competitors.
- The company is a market leader in the global engine industry.
- Rolls-Royce has the ability to invest heavily in R & D (Rolls-Royce, 2014).
These are the unique attributes of the Rolls-Royce brand that puts it at a disadvantage relative to the competition.
- Over-reliance on the civil aerospace sector (Rolls-Royce 2014).
- Inadequate awareness of new market entrants.
These are the elements that the Rolls-Royce brand can exploit to gain an advantage over others.
- Rising demand for nuclear and civil aerospace equipment (Global Data, 2011).
- An expanding marine business.
These are the aspects of the environment in which Rolls-Royce operates in, and which are likely to cause trouble to the brand.
- Government spending in the industry is reducing (Rolls-Royce, 2010).
- Constant fluctuations in the exchange rates of foreign currency.
- Aircraft engine raw materials are rising in price.
- Threat from rival companies.
- Constant delays in delivering aircraft engines to customers, causing complaints from clients.
- Perceived high price of the Rolls-Royce brand.
Porter’s Five Forces
– A brief introduction of what Porter’s five forces entail.
a) Competitive rivalry.
Issues to address:
- Intense rivalry from the three dominant players in the engine industry namely, Rolls-Royce, General Electric (GE), and Pratt & Whitney.
- Competition has been intensified by the need by each of the three rivals to increase market share, market volumes (Pugh, 2001), and acquire technological differential advantage.
b) Threat of new entrant
- Difficult for new players to enter the aero-engine industry.
- Industry is highly specialized and requires heavy investment in R & D.
c) Power of buyer
- Industry characterized by low buyer power.
- Hence prices dictated by buyers.
d) Power of suppliers
- Limited supplier power
- Suppliers in the industry are many, hence have less bargaining power
e) Threat of substitutes
- Limited substitute products, hence low threat of substitutes.
- However, other forms of travel such as the Eurostar and the availability of video conferencing services may limit business travel.
- Definition of core competencies.
- An assessment of Rolls-Royce’s core competencies e.g. increased investment in core products, capabilities, people, and technology.
- Also, Rolls-Royce is a globally acclaimed brand.
- Increased investment in R & D and new product development.
Rolls-Royce’ PESTLE Analysis
Political: Tax policies, trade tariffs, and fiscal policies.
Economic: Interest rates, inflation rate, foreign exchange rates, economic growth patterns
Social: Demographics, cultural trends.
Technological: R & D, technological awareness, automation.
Legal: Safety standards, Consumer laws, labor laws.
Environmental: climate, weather, geographical location.
– A summary of the key issues raised in the body of the paper.
Global Data (2011). Rolls-Royce Group plc (RR.) – Financial and Strategic SWOT Analysis
Review. Retrieved from http://www.researchandmarkets
Gunston, B. (2006). Development of Piston Aero Engines. Cambridge, UK: Patrick Stephens Limited.
Pugh, P. (2001). The Magic of a Name: The Rolls-Royce Story, Part 2, The Power Behind the Jets. London: Icon Books.
Rolls-Royce. (2010). Annual Report 2010. Retrieved from http://www.rolls
Rolls-Royce. (2014). Engines. Retrieved from
Rolls-Royce. (2014). Rolls-Royce combines businesses to bring new benefits to engine life management. Retrieved from http://www.rolls royce.com/news/press_releases/2014/300614_engine_life_management.jsp