Business Case Studies, Growth Strategies Case Study, Rolls-Royce's Civil Aerospace Business

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Case Title:

Rolls-Royce's Civil Aviation Business: "Customer-Driven" Growth Strategies

Publication Year : 2006

Authors: Rajendar Singh, Sumit Kumar Chaudhuri

Industry: Aircrafts and Ship Building

Region:UK

Case Code: GRS0079

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Rolls Royce, the world’s number two commercial airline engine manufacturer, started as a car-maker and then diversified into aero-engines and power generation machinery businesses. With increasing demand for aero-engines, the company divested many of its businesses to increasingly focus on aero-engine manufacturing. However, faced with intense competition from companies like General Electric. and Pratt & Whitney, its revenues started declining. This prompted the company to enter the growing market of aircraft services and maintenance where the margins were usually 30%, much above the margins from engine-sales. By 2005, due to increased customer focus, servicing revenues contributed 59% of the total sales of Rolls Royce.

Pedagogical Objectives:

  • To highlight the growth of Rolls Royce in the global civil aerospace business
  • To discuss Rolls Royce’s customer-driven competitive strategies for its growth in the future.

Keywords : Rolls-Royce; Global aero engine market; Civil aviation industry; Divestments; Customer driven strategies; Competitive strategies; Aircraft service and maintenance; Battle of Britain; Trent engine; Mergers and acquisitions; John Rose; 1977 bankruptcy; Growth Strategies Case Study; Cost cutting strategies; Total care; GE (General Electric Inc) and Pratt & Whitney

Contents : 
Rolls-Royce’s Civil Aerospace Business
Sir John Rose, Chief Executive
‘Customer-Driven’Growth Strategies
The Complete Portfolio of Rolls-Royce Services Comprises
Review of Operations – Civil Aerospace

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