SWOT Analysis of Alliant Techsystems Inc
Alliant techsystems (ATK) is a fortune 500 company with a excessive business in aerospace, defense and commercial products. ATK operates in 21 states of USA and also has an international presence. This company is divided in 3 core groups i.e ATK Aerospace, ATK defense and ATK sporting. This company has a vision to be globally diversifies industrial company that produces highly engineered products which supports the defense and aerospace customers. ATK was launched in 1990. Alliant techsystems provides a support to fulfill needs of defense products for US army and provides high end components for aircraft industry.
Alliant tech systems have a strong technological base. Its products are far better and technologically advanced from its few competitors. All these are unique technologies which are difficult to copy. ATK also has a portfolio of unique products. It has distinctive products in both defense and sporting segments. As ATK produces a high end engineered products, which can’t be bought by everyone therefore it has a strong portfolio of customers through which they can also charge some high prices. ATK group has innovative culture which is a support towards discovering of new technologies. Strength is its powerful brand name and many big corporate names are also part of its brand. ATK also focuses only on a market niche, which is also a significant strength.
ATK is focusing only on a niche, but it has opportunity to enter into new markets and new segments. It has all resources to enter into new markets with new products, which could increase its customer’s base and also minimizes dependency on few customers. ATK can also increase its services and provide more enhanced new services to its clients. Military demand is also increasing day by day and there is a very high potential in ATK to introduce new products for US military, which could help increase its revenue as US military is a core customer of Alliant tech systems.
US economy is under a threat from some years. Inflation rates are moving in a nasty manner and thus ending up increasing prices and reducing demands. It is also affecting the business of ATk due to its high end high priced products only produced for a niche. Government is also coming up new regulations and restrictions for defence industry. There is also a threat of political risk, as new policy regarding war on terrorism could decrease supply for US military and thus affecting the sales of ATK.