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The Internal Analysis For Adam Aircraft


Adam aircraft companies were founded by Rick Adam and John Knudsen in 1988. It is an aircraft manufacturer company plus they produce aircrafts for federal government and civil markets. Company is situated in the South of Denver, Colorado at Centennial Airport terminal (KAPA). A number of general aviation plane are provided by them, like the centerline, thrust twin-engine Adam A500 and A700 twin-engine personal plane.

Rick was the son of George Adam Sr. a skilled career Air push officer. Rick delivered in 1946 growing up in Air make bases led him to check out his father's feet steps and join Air force; due to deficiency he couldn't become a member of the power. He specialised in computer technology and signed up with the army down the road switched to the environment force. In the first 1990's he discovered to fly. He had the opportunity coupled with wealth to advance in flying profession but he came to the realization that most other operator held pilots aren't as fortunate. There was less alternatives among aircrafts which made them challenging to take a flight and hell expensive to be handled and own. He thought on this factor and came to realize the answer is only a entire new generation of aircrafts for basic aviation.

He spotted the opportunity and got the insights with other pilots talking about the same issue on lack of new products availableness. So he initiated and started developing strategies to launch and Aeroplanes Company.

In 1998 Rick partnered with John Knudsen a former FAA trial legal professional and experienced aviator as well with a great profession in U. S Navy. They understand the need of a aircraft or twin piston combined with superior performance functionality, they narrowed down four or five principle designs and began focusing on it.

Internal Analysis for Adam Airplane (AAI)

In any corporation to start out and strategic management process management is required to begin an interior analysis to learn the strength and weakness of the business with analyzing its potential competencies. For creation of effective strategies company must expend and exploit its advantages in every possible way along with reduction in its weakness. It in the end helps the organization to achieve the targeted earnings.

The potential competencies include tool and capacities of the company, this is actually the detailed internal evaluation of Adam Aircraft after researching the case study.


Efficiency in design and production

Because rate and invention was essential for Adam, they instituted 24-hours arranging already used to perform data centers and sites. Also, they was also using highly sophisticated modeling design tools, developed by their powerful airplane competitors.

Professional management team

Adam Aircraft recruited a high executive team includes ten members, and almost everyone is an attained pilot with a long time of experience from all areas of aviation industry including their biggest challengers.

Efficiency with time for Government Aviation Expert (FAA) procedures

Because of the progression in technology all the designs were published to FAA electronically, which preserved a huge amount of time, also guaranteeing the high amount of correctness in the documents published. Adam Aeroplanes as well been successful in getting before their rivals by two years.

Modular architecture

They adopted a fresh theory from computer industry and built a massive modularity into airplane designs to be able to move around aircraft's parts easily. This allowed company to set-up new planes without spending huge amount of money on creation each and every time and with the marginally modification in modules they can get new plane.

Ease of maintenance

The customer of Adam Aircraft has quick access to the machine which able them to obtain a faster, cheaper and better service.


Hindrances in design and Manufacturing new aircraft

Despite the actual fact of all failures in the past and the hindrances involved to get all the gear and trained personnel required for gratifying this. Adam Aeroplanes was planning to create a completely new twin-engine plane for owner-operators.

Limitation of your energy to advertise and increased project cost

Adam Aircraft's management team know the situation that due to the direct marriage between task cost and its time to get certified and market, these were determined without choice but to start out introducing impressive products.

Budget constraints

Rick Adam understood that the typical budget for a fresh airplane project cost $250 million. Due to the little success in this industry that they had to lower their development costs by at least 75 percent to be able to finance the project.

New entrant in the market

Pilots were uncertain to adopt a new aeroplanes which is different from the prevailing ones and created and sold by a truly new aviation building company with no reputation in the market yet. Because of this, they have to be perfect atlanta divorce attorneys possible way for customer satisfaction.

External Examination for AAI

In the exterior analysis management recognizes opportunities and dangers to be considered in growing strategies; for illustration, company will try to find for taking good thing about opportunities and decrease the risk of dangers, in order to attain the business' goals described in the mission statement.

Following is the external analysis of Adam Air art combined with the Porters five pushes model to indicate the opportunities and Hazards Company has.


Huge demand in the market

There were very few aircrafts designed for pilots to choose from, if a pilot wished to switch from a single to a twin-engine airplane. A lot of the twin-engine planes were too large, overweight and very costly. In addition to that, because the 80s there were almost no inventions in twin-engine market.

Advances in computer technology

In the 1990s there was a huge change in computer technology and establishing CAD/CAM centers all the designs and developments could be made in-house resulting in, less time and money cost.

Advancement in processing and tooling capabilities

With the assistance of a new designing and modeling software, and using their own tooling mill the process becomes faster with the ability to adjust the tool until they get what they want.


Past Failures

Adam Airplane was alert to all the past failures by competitor companies, that have tried to create a twin-engine planes, jets, etc. Therefore, they had to consider all the pitfalls in jogging this business with the huge cost engaged.

Expensive and time consuming FAA system of inspections

Federal Aviation Authority (FAA) is in charge of examining the airplane before maybe it's released to the marketplace and designed for use. This sophisticated process of recognition usually takes a lot of time and money building a great challenge for Adam Airplane.

Lack of traders in aviation business

Because of the previous failures in aviation business rendering it unsuccessful investors and venture capitalists did not see the potential development in it, weren't eager and hesitant to aid aviation companies.

High targets of AAI's potential customers

The prospective customers 70-80% for Adam Aeroplanes will be the group owner-operators, who evaluate the plane from the pilot's chair. While making the decision to choose the plane, they pay attention to all the aircraft's details; its performance, handling characteristics, electric systems, comfort, maintenance, etc.

Porter's Five forces Model

After the entire internal and exterior analysis of Adam Plane, we examined the strategic problems faced by management and advised the recommendations as critique.

Strategic Problem

After the entire analysis of the Adam Plane case study it is to be observed it's an entrepreneurial business owned or operated by Rick Adam. Since the start of the business Adam was the main one who raised account for company facing the difficulty as investors weren't interested in the aviation industry. All of the investment and cash raised for the business are done by Rick himself and he always busy in elevating the money with caring for the business affairs.

No strategy has been found by the business in the problem if Adam will never be there for boosting funds. In previous both competitors confronted losing with the long process of qualification with FAA and ceased the production. Adam having a vast experience as a pilot and business men know the risk involved in the business and decrease the cost to almost 75%. An average plane costs around $250 million and the price tag on certification is not contained in it. But reducing the cost is not the right solution. Also in order to improve the production potential in future after approval from FAA plenty of investment with employees will be needed increasing the working cost of the business enterprise.

The next management problem Adam Aircraft might face or began to face is the reluctance from its potential prospects or after sales service they offer. The marketing arrange for its aircrafts with their customers might face this huge problem in future. From strategic perspective a proper marketing strategy is not developed yet and just by making sure that the airplane designed is modular and easy to get at system will not assure to the customers.


Adam aircraft is at the position right now to acquire funds from partnership or from lenders on permanent basis. Partnership can be done in those market segments where they have significantly more than 50% customers or potential prospects can be produced. For example in Asia Adam aeroplanes can partnership with other companies on terms and condition to avoid or discuss the financing required in future. Proper way to resolve this problem is to analyze a timely requirement of cash via current cash flow to be monitored and used for obtaining loans.

A proper funding from enterprise capitalist can be done only if the existing manufacturing process will go with a tempo securing the interest of the traders and knowing them that there money is well spent.

A strategic procedure must be developed for marketing of the merchandise not and then the current customer but also to find new customer in new market segments. If they get the certification from FAA on time and customer will not buy the aircrafts or hesitate or they get few requests any of this problem can raise the cost for company.

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