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SWOT
Analysis for Adam Aircraft (AAI)

Strengths
High speed in design and production
Since speed was crucial to AAI, it has instituted 24-hours scheduling. Additionally, AAI was using highly sophisticated modeling design tools, developed by powerful aircraft builders.

Highly professional management team
Adam Aircraft executive team consists of 10 members, and almost everyone is an accomplished pilot with many years of experience in aviation.

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Time advantage in Federal Aviation Authority (FAA) inspection procedures
All the designs were submitted to FAA electronically, which saved a lot of time. AAI succeeded in getting ahead of its competitors by 2 years.

Modular architecture in manufacturing
AAI has built an enormous modularity into its design to be able to move around aircraft’s details easily. This allowed company to create new planes without spending big money on production every time.

Easy maintenance of an aircraft
AAI is able to provide its customers with a faster, cheaper and better service due to the easy access to the aircraft’s system.

Weaknesses
Difficulties in designing and building a new aircraft
AAI was planning to create a completely new twin-engine aircraft for owner-operators. It was aware of all the failures in the past and of the difficulty to get all the equipment and trained workers required for fulfilling this task.

Little time to market and high project cost
AAI’s management team realized that due to the direct relationship between time to market and project cost, they had no choice but to start introducing innovative products.

Low budget
The standard budget for a new airplane project is $250 million. AAI had to cut its development costs by at least 75 percent to be able to finance the project.

No reputation in the market
Pilots were hesitant to adopt something that is new and AAI was an absolutely new aviation building company with no reputation in the market. For that reason, AAI has to be perfect in every way.

Opportunities
Big demand in the market
There were very few products to choose from, when a pilot wanted to switch from a single to a twin-engine aircraft. Most of the twin-engine planes were too big, too heavy and too expensive. In addition to that, there were almost no innovations in twin-engine market since the 80s.

Advances in computing power
In the 1990s there was a big change in manufacturing due to the advanced computer power. All the designs and developments could be made in-house and, therefore, were taking less time and money.

New manufacturing and tooling capabilities
With the help of a new designing and modeling software, manufacturing and tooling capabilities became more advanced.

Threats
Failures in the past
AAI was aware of all the past failures by those companies, which have tried to build a twin-engine planes, jets, etc. Therefore, AAI had to consider all the possible pitfalls in running this business.

Long and expensive FAA system of inspections
Federal Aviation Authority (FAA) is responsible for examining the product before it could be released to the market. Examining process usually takes a lot of time and money.

Investors’ reluctance to invest in aviation business
Since aviation business was not successful in the past, investors did not see the potential growth in it and were not willing to support aviation companies.

High expectations from AAI’s potential customers
AAI’s focus group is owner-operators, who are evaluating the aircraft from the pilot’s seat. When buying a plane, they pay attention to all the aircraft’s details; its performance, handling characteristics, electronic systems, comfort, maintenance, etc.

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