Product Life Cycle

Introduction

The concept of a successful business model is one that creates a heuristic logic that connects technical potential with the realization of economic value (Chesbrough, 2002). This essay will question on Rolls Royce Holdings PLC current business model with evaluation to its interaction in the product market and the capital market. It will be covered by analyzing the profitability of Rolls Royce product or service portfolio and the strategies applied to achieve a competitive edge over their competitions like GE Aviation and Pratt & Whitney. These are strong competitors of Rolls Royce in the aerospace industry, providing aircraft engines, systems, and aviation to the market. A close examination of Rolls Royce internal architecture will determine if its current organizational systems and processes can withstand the necessity to innovate and sustain technological advancements from the market, as well as an analysis of the main financial indicators that would be able to provide an assessment of their current situation. Based on the research findings and analysis, this essay will then be able to provide a viable strategic recommendation for the future of Rolls Royce Holdings PLC.

Background

Rolls Royce Group Holdings PLC is a global provider of complex, integrated power systems and services to the aerospace and marine/industrial power systems markets with the support of two strong technology platforms: gas turbines and reciprocating engines (Rolls-royce.com, 2015). It was first grew from the electrical and mechanical business established by Henry Royce in 1884 which then incorporated as Rolls Royce Limited in 1906 (Rolls-royce.com, 2015). However, Rolls Royce fell into bankruptcy in 1971 in developing the RB211 for the Lockheed L1-011 Jumbo Jet which the company overspent and overran on development. This caused the collapse that put thousands of jobs at risk and remains one of Britain’s largest ever corporate failures (Wilson, 2011). Nonetheless, as a...