| Abstract: | This paper discusses progress in developing a strategic-positioning model for defense and aerospace contractors in the post-Cold War era. Going beyond traditional concepts of technology transfer, defense conversion, and corporate diversification, strategic repositioning is concerned with the entire set of organizational transformations required to successfully focus the firm's core competencies onto other economic sectors. It is a process of looking at all of the firm's capabilities, resources, and aspirations in a completely new light. Construction of the strategic-positioning model, now in progress, involves three stages: 1) conceptualizing the process, 2) formulating a theory of strategic repositioning through exploratory discussions with defense contractors at various stages of the process, and 3) constructing a strategic- repositioning decision-support tool for defense firms undertaking the process. This paper reports the results of the second stage, the exploratory discussions. Surprisingly, technology was of the least concern to the contractors. Rather than the technology itself, contractors were concerned about the different expectations of non-DOD markets regarding such ancillary technology issues as quality, reliability, maintainability, and the degree of technological standardization. Of greatest concern was the nature of the organization, particularly the contractor's corporate culture and how well it would fit with non- DOD markets. |
