SpaceX: SpaceX is an aerospace manufacturing and space transportation providing

company founded in 2002. Their main goal is to minimize space transportation costs. I

have done a SWOT analysis to find out the internal strengths and weaknesses and

external opportunities and threats of SpaceX.

SWOT (Strength, Weakness, Opportunities, and Threats) Analysis:

1.1. Strengths:

1.1.1. Reusable System: SpaceX is the first privately owned aerospace manufacturing

company that has built reusable rockets. It has lowered the cost of spaceflight as

compared to other rocket manufacturer companies. Falcon F9 is the first orbital-class

reusable rocket introduced that ensures the reliability and safe travels of people and

payloads into earth orbit (SpaceX, 2021) i.

1.1.2. In-House Manufacturing: SpaceX performs all the development and testing In-

house. SpaceX has a very short supply chain. It has a vertically integrated system that

permits them to manufacture products for minimal prices since it is a lot less expensive

to make components In-House rather than purchasing from traditional vendors

("SpaceX – Lowering the Cost of Access to Space - Technology and Operations

Management", 2015)ii.

1.1.3. Innovation and Technology: SpaceX has built a reputation of developing high-

tech innovative commodities timely and constantly exploring new ways to compete in

the market e.g. Falcon heavy is the made of three Falcon 9 when joined together as its

first stage designed to carry 53,000kg twice the size of its largest competitors, the
Boeing's Company Delta heavy IV. (Logsdon, n.d.) iii. They are primarily focusing on

research and development introducing new tech commodities in the markets i.e. Falcon

1, Falcon 9, Dragon Vehicle, Heavy Launch Vehicles, Starlink Communication

Satellites, and Rocket engines. The first-ever private spacecraft was Dragon to reach an

international space station and the company has planned to launch around 1740

satellites as part of their satellite constellation project and deemed to become the world

largest constellation in Jan 2020 ("Top 10 SpaceX Competitors & Alternatives", 2021) iv.

1.2. Weakness:

1.2.1 Requirements of capital: SpaceX is a privately held firm. Space exploration is

very technological and it can be done through research. That being said, going to mars

should be very expensive. It requires huge investments which are difficult to obtain.

Since its private, the company cannot fund its entire project. The company will be

needing individuals and other companies to fund the project. SpaceX has started the

Starlink Constellation project to generate revenue in this sector. But the risk associated

with this business is very enormous that companies with far greater resources have not

pursued this business. If SpaceX might have worked with other tech companies, the

financial crisis might be bearable but SpaceX's investment plans are not aligned with

the company's capacity to raise funds.

1.2.2 Weak Enterprise Profitability: Company has generated very low revenue as

compared to its competitors. Company income is very fluctuating; it has generated $2.5

Billion in one year and next year it came down to 270 million. The unstable revenue will

impact on company running projects. The company policy has been to cut prices as it
means, thin margin. If the company will not be able to generate respectable margins the

company would be facing loss (Thompson, 2021) v.

1.2.3. Scale: SpaceX is one of the growing companies around the globe but things will

become difficult for the company if it grows in the marketplace. It is easier for small-

scale organization to manufacture their own material; they can choose which projects

they do but as soon as SpaceX will grow the budget will be much higher, the capabilities

will be stretched and more will be the competition.

1.3. Opportunities:

1.3.1. Growth Potential of Market: The market is emerging and SpaceX can increase

the position of the firm by taking advantage of all the changes in the market. The first

potential is the aging status of the larger public. Keeping in view new entrants there is a

large government space organization that potentially rewards those who work with

them. space organizations SpaceX has controlled its value in the market by strongly

contracting with NASA. SpaceX propelled itself after recognizing that much younger and

learner organizations can be a part of great benefit to NASA. SpaceX has grown many

innovations which created great value of working with government bodies to achieve

communal goals. SpaceX has to affirm its position in the market by leveraging these

bigger organizations and their usefulness for other partners that in a case seen funding

cuts and industry decline. It will be beneficial for SpaceX in terms of funding and

resources from their investment partners. Advancement in technology will increase the

demand for launching satellites. Companies to establish communications and internet

capacity in remote locations where is impossible to reach otherwise, they will look into

space.

1.3.2. Leading Company: SpaceX with state of cutting-edge technology, pricing, and

top-of-line employees has the good fortune of less competition in the market. The

colonialization of Mars is the main goal of SpaceX and makes humans a multi-planetary

species. There are not many industries that share common goals as SpaceX. In 2020,

SpaceX has generated revenue of 2.5 Billion and had 7000 employees. In comparison

with competitors, no competitor has such a large structure and revenue. SpaceX has

awarded a contract of NASA Gateway Logistics Service (GLS) that involves

transportation cargo and other equipment to Gateway space station. It was one of the

critical parts of NASA's plan named as Artemis Program. This program is tied up with

setting up a lunar base to facilitate missions on Mars. There were four competitors

including Boeing but SpaceX contended each of four and won this agreement (Zafar,

2021)vi

1.3.3. Space tourism: SpaceX has incorporated a completely new market of space

tourism and they are hoping to take a large share of it. The planning is underway and

using this demand around the globe will help helpful for the company to establish a

profitable consumer department of the firm. The explosion of space tourism is near,

and the competition is growing fast. But with such great launch capabilities, there will be

no doubt that people will purchase tickets out of our atmosphere. If this comes out as

profitable then growth opportunities for SpaceX are endless.

1.4. Threats:
1.4.1. Upcoming Competitors: The new entrants coming into the untapped market will

be a threat. There are large companies that can easily invest and start similar projects.

There is very intense competition between SpaceX and Blue Origin. Studies revealed

that the obsession of blue origin to adopt strategies of SpaceX of low-cost

manufacturing and talent acquisition are at large etc. The blue origin is completely

involved in learning the strategy of SpaceX (Datti, 2021) vii. Recently Jeff Bezos went to

space and back in a capsule-based rocket by his company Blue Origin. He shared in an

interview that he has an environmental vision. He wants to take all heavy industry,

polluting industry to space, and make earth the beautiful gem of the planet (Jackie

Wattles, 2021)viii. SpaceX should be doing developments on high levels, bringing

innovations otherwise the investors will take out their funds.

1.4.2. Commercial Market Stagnation: The market for commercial space launches

around the globe is not very big. According to Bryce and Technology, an analytical outfit

figures it is around $6 billion annually. SpaceX without a doubt has come up with cut

prices for placing satellites in geosynchronous orbit but demand for geo sat com

launches has stagnant. It will be viable if there are ten per year launches said by biggest

competitor Arianespace. Lower demand is widely viewed as the "new normal''

(Thompson, 2018)ix.

1.4.3. Environment Impacts: Space X's site is surrounded by state and federally

protected lands. The explosions littered parts of the delicate ecosystem of lower Rio

Grande Valley national wildlife refuge – comprising, beaches, and grasslands that host

a huge range of wildlife with rocket wastes. Space X has been planning also to launch

the biggest rocket in the world, the Superheavy booster, and starship. The reusable
rocket means cutting down the resources required for the metal body of the rocket.

However, the mass of most rockets is more than 95% fuel. Building bigger rockets with

bigger payloads means more fuel will be used for each launch. The fuel utilize in falcon

is kerosene which delivers a lot of carbon dioxide when consumed. The consumption of

fuel in three falcons is around 440 Tons and RP-1 has 34% Carbon Content. If SpaceX

is planning to set up a launch after every two weeks this measure of carbon (around

4,000 tons each year) will quickly turn into a more concerning issue (Thompson, 2018).

1.4.4. Safety Concerns: Safety should be very concerning to SpaceX. There is a very

high risk involved in successfully launching rockets. SpaceX is planning for crew

transportation but they should first check all safety measures to avoid any loss and

causality. The Falcon 9, a self-landing rocket once exploded after a few minutes of its

departure. The company has lost $260 Million when this f9 exploded with a large

amount of cargo headed towards ISS International Space Station ("The Financial Toll of

a SpaceX Explosion is Staggering", 2021)x.

1.4.5. Contract Dependability: SpaceX has been fortunate to get contracts by offering

traditionally low prices in the past from bigger organizations such as NASA but keeping

in view of new entrants reduces the chances of SpaceX as others are seeking to meet

this price. Launch failures will also reduce the chances of contracts. As contracts with

an organization like NASA is the main part of capital funding. Without assurances, it is

not possible that contracts will continue which is a threat to the company in terms of

funds.

References:
i
SpaceX. (2021). Retrieved 28 December 2021, from

https://www.spacex.com/vehicles/falcon-9/

ii
SpaceX – Lowering the Cost of Access to Space - Technology and Operations

Management. (2015). Retrieved 28 December 2021, from https://digital.hbs.edu/platform-

rctom/submission/spacex-lowering-the-cost-of-access-to-space/

iii
Logsdon, J. Falcon | Definition, History, & Facts. Retrieved 28 December 2021, from

https://www.britannica.com/technology/Falcon-launch-vehicle

iv
Top 10 SpaceX Competitors & Alternatives. (2021). Retrieved 28 December 2021, from

https://bstrategyhub.com/spacex-competitors-alternatives/

v
Thompson, L. (2021). Five Existential Challenges Facing Elon Musk's SpaceX. Retrieved 28

December 2021, from https://www.forbes.com/sites/lorenthompson/2018/12/11/five-

existential-challenges-facing-elon-musks-spacex/?sh=4216bfe2127d

vi
Zafar, R. (2021). SpaceX Beat Boeing For Moon Logistics Through In-House Design And

Strong Dragon Track Record. Retrieved 28 December 2021, from

https://wccftech.com/spacex-gateway-boeing-design-dragon/
vii
Datti, S. (2021). Was Jeff Bezos Obsessed With Elon Musk's Space Ambitions? Leaked

Document Suggests So!. Retrieved 29 December 2021, from

https://www.gizbot.com/news/blue-origin-vs-spacex-leaked-document-reveals-truth-about-

bezos-space-company-077167.html

viii
Jackie Wattles, C. (2021). Jeff Bezos just went to space and back. Retrieved 29 December

2021, from https://edition.cnn.com/2021/07/20/tech/jeff-bezos-blue-origin-launch-scn/

index.html

ix
Thompson, L. (2018). Five Existential Challenges Facing Elon Musk's SpaceX. Retrieved 29

December 2021, from https://www.forbes.com/sites/lorenthompson/2018/12/11/five-

existential-challenges-facing-elon-musks-spacex/?sh=4216bfe2127d

x
[x] The Financial Toll of a SpaceX Explosion is Staggering. (2021). Retrieved 29 December

2021, from https://futurism.com/the-financial-toll-of-a-spacex-explosion-is-staggering