Business model transformation for the international division of a fortune 100 high technology company

Abstract

Raytheon Canada in Waterloo, Ontario offers a very interesting but challenging research case. As one of the international divisions of Raytheon Corporation, the company has a business model similar to its parent company. The company however is facing new trends in its business environment which have characteristics different than those of its parent company. The main focus of this thesis is to identify the key missing elements in the company's current business model and propose solutions in order to assist the company to adopt the best strategy to successfully operate in this evolving market.The company's interactions with the rest of Raytheon are limited due to the recent tightening of ITAR regulations. Although the company's organization structure is still tightly integrated to the rest of Raytheon, Raytheon US restricts the company's access to the best practice from the rest of the corporation in US. Another interesting observation relates to the company's two major product lines. ATM, Raytheon Canada's legacy product line is being disrupted by the recent arrival of ADS-B technology. This new technology has the potential of providing a major threat to company's sustainability. At the same time Raytheon Canada is introducing HFSWR, which is a disruptive technology, to maritime surveillance market. The company is facing the challenges of commercializing this breakthrough technology to a highly regulated and fragmented market. Raytheon Canada needs to operate in this complex business environment. This makes the company a remarkable research case for analyzing its current business model and ways to improve it through integrating the latest business knowledge from both industry and academia.

(cont) The goal of the thesis is to assist Raytheon Canada to transform its business model by determining the key characteristics of its future business model through detailed assessment of the company's current business model and study of the enterprise future business environment. This is obtained by studying the market research data, the strategic goals of parent company, trends in the technology and product landscape, and the customer behavior. Solutions are proposed for developing a realistic roadmap to transform the current business model of the company to address the future business environment challenges.