SpaceX Analysis

The Business Model Canvas (from visologi.com)

Key Partners

  • Raised $1B in funding from Google and Fidelity
  • Investors Group of Draper Fisher Jurvetson
  • Founders Fund
  • Valor Equity Partners and Capricorn
  • Industry Communities
  • Suppliers

Key Activities

  • Designs
  • Manufactures and launches advanced rockets and spacecraft
  • R&D
  • Launch Missions

Value Proposition

  • Revolutionize Space Tech
  • Interplanetary Human
  • Improve cost and reliability of access to space by factor of ten
  • Reusable launch system

Customer Relationship

  • Direct Interaction
  • Maintaining Support: Continual interaction with individual representatives
  • Long-term contracts

Customer Segments

  • US Govt
  • NASA
  • Defense
  • Commercial
  • Rich People in Future
  • Other public and Private Space: Asian Satellite Telecom and Loral Space&Comm.

Key Resources

  • Physical asset
  • Human Resource
  • Expertise
  • Financial Resources
  • Intellectual Property
  • COTS Contract by NASA
  • Low cost proposal

Channels

  • SpaceX offices
  • Launch Facilities
  • Development Facilities
  • Supplier Locations

Cost Structure

  • Employee salaries (smaller compared to other space launch companies)
  • Falcon 9 and Dragon developments
  • Launch missions
  • Economies of Scale

Revenue Streams

  • Licensing Tech
  • Commercial Cargo Contract
  • Commercial Crew Contracts
  • Low cost space travel tickets (future)

SWOT

Strength

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Weakness

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Opportunities

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Threats

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Porter's 5 Forces

Threats of New Entry

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Threats of Substitute Products

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Competition
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Bargaining Power of Customer

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Bargaining Power of Supplier

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PESTEL

Politic

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Economy

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Social

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Technology

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Environment

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Legal

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Business Model Canvas (cleverism)

Value Proposition

  • SpaceX offers three primary value propositions: accessibility, performance, and brand/status.
  • The company has created accessibility by enabling travel to space for relatively inexpensive means. This has provided transport opportunities for many organizations seeking exploration.
  • Having the first privately-funded, liquid-fueled rocket to reach orbit around Earth
  • Being the first private company to successfully launch, orbit, and recover a spacecraft
  • Being the first private firm to send a spacecraft to the International Space Station
  • Being the first private firm to send a satellite into geosynchronous orbit
  • Overseeing the first landing of a first stage orbital capable rocket
  • Overseeing the first water landing of a first stage orbital capable rocket
  • The company has built a strong brand. As the first private company to actively explore space travel, it is well-established and well-known. It has gained further prominence through its association with Elon Musk, a high-profile entrepreneur who co-founded PayPal and founded Tesla.

Revenue Stream

  • SpaceX has one revenue stream: sales of the rockets, satellites, and merchandise it manufactures. The Falcon 9 rocket costs $62 million. The Falcon Heavy rocket costs $90 million. Pricing for the Dragon rocket is not currently available. The company’s website includes a store where it sells SpaceX-branded T-shirts, outerwear and accessories with a wide range of prices.

Cost

  • SpaceX has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent product enhancements. Its biggest cost driver is likely cost of goods, a variable cost. Other major drivers are in the areas of research/development and sales/marketing, also fixed costs.

Key Resources

  • SpaceX’s main resource is its technology staff, which includes software, hardware, structural, and propulsion engineering employees. These employees work in its rocket development facility in McGregor, Texas; rocket testing facilities in Texas and New Mexico; launch facilities at Cape Canaveral Air Force Station, Vandenberg Air Force Base, and Kennedy Space Center; satellite development facility in Redmond, Washington; regional offices in Texas, Virginia, and Washington, D.C.; and headquarters in Hawthorne, California. As a startup, SpaceX has relied heavily on funding from outside parties, raising $1.25 billion from 11 investors as of January 2015.

Key Partners

  • SpaceX’s key partners are the suppliers who provide the parts for it to manufacture its spacecraft. The company has more than 3,000 of these partners, with 1,100 of them making weekly deliveries.

Key Activities

  • SpaceX’s business model entails designing, manufacturing, and launching rockets and satellites.

Customer Segments

  • SpaceX has a niche market model, with a specialized customer segment. The company markets its offerings to public and private organizations that want to transport items to space. Its projects have included commercial satellite launch, space station resupply, and government national security missions. Specific clients have included OrbComm, the U.S. Air Force, and MDA Corporation.

Channels

  • SpaceX’s main channel is its business development team, through which it acquires most customers. The company promotes its offering on its website and through its social media pages.

Customer Relationship
  • SpaceX’s customer relationship is primarily of a dedicated personal assistance nature. The company works closely with clients as it oversees the launch, orbiting, and recovery of spacecraft.

Monopoly Characteristic

Proprietary Tech

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Network Effect

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Econ. of Scale

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Branding

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7 Questions of Business

Engineering Question

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Timing

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Monopoly

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People

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Distribution

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Durability

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Secret
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March 18, 2019 Notes

Jason Calacanis and Peter Thiel
  • Subcontract component, bespoke, not innovate
  • reusability cuts cost 70-80%