Essay Example on SpaceX's Strategies for Success: Public-Private Partnerships

Introduction

The second strategy was to partnerships. The SpaceX model was to use NASA as a strategic partner to get an advantage on NASA's technological prowess while having the freedom to acquire parts outside government contracts (Reddy 2018); this was a massive step in the space industry. In doing so, SpaceX was able to create public, private partnerships in the space industry, which would allow alignment and efficient use of fiscal resources (Reddy 2018).

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The third strategy, which is the most important to SpaceX, is vertical integration. With over 4000 employees, SpaceX does its design and manufacturing of every part necessary part of the rocket to make it in the house; this has enabled SpaceX to produce innovative new technologies of much lower costs. At the same time, avoid the constraint of the previous rocket designs while blue origin acquires some of its rocket components from other traditional manufacturers raising their production cost.

Project management is the process of putting into practice the knowledge, skills, tools, and techniques to the project activities so that the project requirements are met (Reid et al. 2015). In SpaceX, the process falls into five major groups: initiating, planning, executing, monitoring, controlling, and closing. Its goals, resources, and schedule shape SpaceX's project management of each project, like the dragon series project. In contrast, operations management is focused on managing the production processes and distribution of products and services.

The significant activities operation management at SpaceX includes product creation, product development, production, and product distribution. Usually, a project is successful when the project management in action is effective. The efficient achievement of an organization's objective requires planning and effectively organizing resources management. Most of the Blue Origin projects have not been successful due to a lack of active management, which ranks SpaceX above them.

The ultimate goal of SpaceX is to enable people to live in other planets. To achieve the goal, the company has project managers that are motivated and are goal-driven. The ability for SpaceX to negotiate with other agencies like NASA has contributed a lot to its projects, including its contract with NASA to carry its crew and cargo to space, which helped space x gain enough revenue to carry on with its plans. Other companies like blue origin need to be good at negotiating with government agencies to acquire enough income to complete their projects in time.

A big firm like SpaceX has similar control ways for projects irrespective of their nature or service. Therefore, they can reduce costs in all departments, reduce risks, and manage to get secure supply sources (Svejvig et al. 2015). Operations management enables global firms to improve customer services and, in turn, attract new markets. They are also able to learn how to improve operations and attract global talents.

When SpaceX thinks about ways of entering into new markets or extending the existing business ideas, it uses strategic partnering as an option. Their rationale varies depending on the market; it might be an addition of revenue to fund other upcoming projects, market entrance, or new technology. For instance, SpaceX has been looking at how to reduce the cost of space transportation and the market to enter. Their first step SpaceX did was to do a market transparency assessment to obtain an outside-in perspective. For similar companies, for instance, blue origin, they need to try different strategies like collaborating to enable them to attract more investors for new technologies or fund other upcoming projects.

Supply Chain Management, Capacity, and Quality

One of the essential parts of every organization is supply chain management (Oelze et al. 2018). It involves the activities of managing the movement of materials and products in and out of a company while maximizing the customer value to achieve and maintain a suitable competitive company advantage (Prajogo et al. 2016).

SpaceX has a very short supply chain. The company has vertically integrated systems that enable 70 % of its rockets to be manufactured in house (Gudmundsson 2018). With the help of new techniques like 3D printing, it is cheaper to make its parts than buy the components from traditional vendors. SpaceX buys some elements that it cannot produce from companies with no history of working for the space industry. It thus reduces the purchase cost while allowing SpaceX to have massive control of costs (Gudmundsson 2018); this is a different case with the Blue Origin Company that purchases most of the rocket parts they manufacture from other traditional manufactures.

Supply chain management helps boost SpaceX's customer service because they can get the correct product assortment and the right quantity delivered (Heydari & Ghasemi 2018). Customers get products at the right location, and delivery is done at the right time. Customers of SpaceX also get right after-sale support. A well-defined supply chain management can help companies in space exploration technology to deliver their promises to their customers efficiently and on time (Heydari & Ghasemi 2018).

Operating cost is reduced. Effective Supply chain management decreases purchasing costs for retailers. Production costs are also reduced because manufacturers like SpaceX get materials from different suppliers in time to avoid production shut down (Gudmundsson 2018). Lastly, it lowers total supply chain cost; an efficient supply chain has enabled firms like SpaceX to be more competitive than blue origin in the market place.

An efficient Supply chain management Improves financial position. Controlled and reduced supply chain costs increase profit advantage. In SpaceX, which has a controlled supply chain, its fixed assets are decreased, which has improved competition among firms. The use of substantial fixed assets like warehouses and transportation is reduced (Desaulniers et al. 2016). Cash flow is increased because product flow to customers is fast; for instance, SpaceX's ability to manufacture their rocket parts reduces the manufacturing cost while increasing the production cost.

To break into a new market, SpaceX has highlighted innovation and quality as fundamental for its medium and long-term success (Hitt et al. 2016). SpaceX has continued to push its transformation from a space exploration company to set a greenhouse on planet mars into the ever-growing high-tech markets to become a leading high-tech private manufacturer of advanced rockets and spacecraft. The challenges and global trends for missions to and beyond Earth orbit, the continuous growth of demand for passenger rockets, and the need to explore and travel the world faster continue to open up opportunities for spacecraft and rockets. These objectives and drive, which are absent in blue origin, has enabled SpaceX to plan for future systems. SpaceX identifies digital technologies and possible life in other planets like mars as the significant issues that need to be tackled.

Challenges associated with capacity, flow, and inventory management are both internal and external. For size, it is challenging in SpaceX to determine existing storage capacity and the usage trends across the organization with the same challenge experienced in Blue Origin (Gudmundsson 2018). To determine whether the usage supports the organizational goals is so challenging, also defining and implementing storage policies is challenging. For instance, in blue origin, adjusting the policies is challenging because organizational needs change, and capacity needs to grow.