Abstract
To what extent do vertical integration and first-mover advantage impulse the ventures of small launcher manufacturers?
In the very fast-growing market that is New Space, the development of small satellites implies a high rise of the demand for small launching solutions. This context is a fertile soil for entrepreneurial ventures and therefore start-ups all over the world are going to try to get their share of the cake: 89 small launchers are under development today. Competition is expected to be fierce and it seems natural to see a handful of leaders take up the majority of market shares, leaving the other contenders to die off. To try to understand what the key factors of success are in such a competitive environment, two managerial principles are being studied, ones that seem to have a high potential impact on the future of the ventures participating in this new space race : the vertical integration of the production process, and the first-mover advantage that the early innovators may be benefiting from. The study of the first one showed that vertical integration is a great way to mitigate risk, reduce costs, and have control over the production and R&D processes. Then, the main advantage of first mover seems to be time: by being the leader of its market for a period of time, the company will gain experience, improve its efficiency and will hopefully develop its portfolio and processes. However, trying to differentiate a product from its competitors by innovating is risky, as the firms must stay very much aware of the market needs.
