Aerospace and defense

With an integrated, capabilities-based, and authoritative industry perspective, we help clients develop long-term strategies to stay competitive even in turbulent times.

Bold, practical strategy that works

PwC's Strategy& India’s aerospace and defence practice works with Indian and foreign clients to address their ambition to enter/expand into the sector, critically evaluating their right to play and to win in the market. We have successfully delivered multiple engagements with leading private and public sector clients, driving decisions to pursue growth opportunities in land, sea and air-based platforms, across various tier-positions in the aerospace and defence value chain. Continuous focus on execution and ‘business building’ orientation ensures that our strategies are practical, credibly mitigate key risks and articulate capabilities, business shifts and structures required to deliver shareholder value on the dimensions of scalability, sustainability and profitability.

Our team comprises a mix of functional and industry experts, sharing the passion for client service, working towards building capabilities of companies to deliver value to their businesses and to the nation. Working extensively in a sector which is in its nascent stage in India, and is characterised by huge capital investments, uncertain demand, and policies which seldom have delivered desired results, the team has developed a strong sense of the ‘realisable market opportunities’ and hence, is able to quickly identify relevant opportunities core or adjacent to the areas of strength of any client.

Our recent experience consists of projects across market assessment (defence go/no go), market entry strategy, capability driven growth strategy, M&A target screening/due diligence and strategy execution program management.

Over the years, the team has successfully differentiated itself in the market being a strategy team exclusively focused on the defence sector (rather than leading from a regulatory, tax, or research standpoint), having hands-on experience working across platforms and clients, and having a unique understanding of market opportunities and constraints. Our strong network of subject matter experts in India and globally helps validate and strengthen our point of view, providing critical insights.

Aerospace and Defense Trends 2018-19

Each year, Strategy& looks at the major trends shaping different industries to help you navigate the challenges and seize opportunities.

After decades of being the big players in a global pond, defense contractors must reinvent themselves as local businesses around the world.

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How we can help you

Business strategy

As players around the world expand their role in the A&D sector, and new technologies change customer acquisition priorities, companies must adapt to evolving market conditions and reevaluate their strategic direction. With unmatched industry experience, we help unlock our clients’ growth potential by developing integrated, capabilities-driven strategies. Service offerings include:

  • Corporate strategy
  • Organic growth
  • Portfolio strategy
  • Market entry strategies
  • International expansion
  • Shareholder value strategy
  • Strategic planning

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People and organization strategy

In a marketplace characterized by intense competition, complex requirements, and tight timeframes, A&D companies must consistently improve quality and reduce costs while maintaining the ability to exploit new opportunities. These demands often require companies to realign their organization, seek strategic M&A opportunities, and use objective- driven change initiatives to steer organizational transformation. We enable seamless transitions, helping clients improve their operational efficiency and competitiveness in an increasingly global industry. Service offerings include:

  • Post-merger integration
  • Organizational effectiveness and alignment
  • Operating model design and implementation
  • Strategic communications

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Operations strategy

We help clients optimize their operations by focusing on differentiated capabilities for continuous and sustained innovation. We focus on reducing costs to enable reinvestment, while bringing growth rates and returns on invested capital that exceed the performance of their competitors. We have deep knowledge and experience in industry 4.0, lean principles, sourcing, transparency, and tax issues across A&D manufacturing, distribution, and transportation. Service offerings include:

  • Customer operations
  • Innovation and product development
  • Strategic supply management
  • Manufacturing
  • Supply chain
  • Capital assets
  • General and administrative operations
  • Enterprise-wide operational excellence
  • Digital operations

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Technology strategy

In the A&D industry, the IT organization increasingly finds itself caught between opposing imperatives—being encouraged to provide greater support to the business and trying to control costs. We partner with our clients to create value in two important ways: by working with clients to reduce the cost of IT by aligning infrastructure, applications, and acquisitions to best practices; and by identifying opportunities to align IT with business strategy to increase competiveness and the ability to integrate with clients and partners, creating new growth opportunities over the long term. Service offerings include:

  • Capabilities architecture
  • Digital strategy and transformation
  • Technology-targeted Fit for Growth approach
  • Analytics and data management

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Megaprojects

Whether you’re building new aircraft, commercial nuclear power plant designs, or something else entirely, our A&D expertise provides insight into best practices in program management and performance. We work with all types of megaproject stakeholders, including corporate owners, engineering procurement and construction (EPC) firms, original equipment manufacturers (OEMs), governments, and major suppliers to improve the likelihood that a megaproject will be delivered safely, on-time, on budget, and with high quality. Service offerings include:

  • Assessment and capability building
  • Risk management
  • Leadership and operating model
  • Contracting and procurement
  • Design for affordability
  • Management outsourcing

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Insights

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In an era of uncertain defense budgets and a shrinking procurement base, the traditional approach of squeezing savings through incremental...

Case studies

  • Business strategy
  • Organization strategy
  • Technology strategy
  • M&A transformation
Business strategy

Non-U.S. government agency advised on international market entry strategy

PwC’s Strategy& was hired by a non-U.S. government agency to assess potential entry strategies to the U.S. defense market for its aerospace and technology industrial bases. The project team, all experts in U.S. defense and international defense policy, quickly segmented and sized the market, identifying relevant areas of entry for the client. A value chain analysis segmented international participation for military sea, air, and land platforms in addition to addressing the increasingly global nature of commercial aerospace programs. As a result of our work, the client was able to understand the U.S. defense regulatory environment and identify key avenues for penetration and growth.

Global aerospace and defense company optimizes and simplifies its finance capability

PwC’s Strategy& worked with the leadership of a leading aerospace and defense company to optimize the finance team's ability to serve the business as a value integrator. We diagnosed root causes for the organizational complexity, addressed workload fragmentation through classification / reallocation of finance activities according to business value, developed operating model options to optimize service delivery, and highlighted more rewarding career pathways for finance team members. As a result, we aligned leaders on an enhanced operating model and roadmap and identified ~$50M in savings opportunities.

Technology strategy

Wireless and broadband company seeks growth opportunities in U.S. defense market

PwC's Strategy& was retained to create a U.S. government communications market growth strategy for a global commercial wireless and broadband network company. We segmented the market between base and tactical clients and assessed the current DHS and DoD demand for highly mobile voice-based applications and wireless broadband solutions. Through interviews, research, and quantitative analysis, we identified emerging market trends, assisted the client in defining its position for emerging growth opportunities, and helped align its product and technology portfolio with immediate market needs.

M&A transformation

Post-merger integration road map successfully leads to cost saving

PwC’s Strategy& was retained to assist in the stand-up of a joint venture and develop a financial and consolidation strategy to enable cost savings identified by the U.S. government. We identified financial and operational options, tactical restructuring trade-offs, and opportunities to build momentum across the client enterprise to close a successful implementation. We continue to lead the client's executive team through a transformation road map that has identified approximately $1 billion in potential savings.

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