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(BAE Systems plc 2006) Wiki 63 In order to involve in this business as soon as possible, BAE taken strategy of 'following acquisition”, which keeps an eye on the strategic objectives of the industry leader General Dynamics.( Stem Connector nd)

 

In military industry, only General Dynamics are unique in terrestrial business of armored vehicles. Alvis Vickers is the main armored vehicles manufacturer in the UK, 90% of the in-service armored vehicles in British army, more than 30,000 armored vehicles in 40 countries around the world were from Alvis Vickers, if successful acquisition Alvis Vickers, General Dynamics will undoubtedly expand monopoly advantage. (CAAT 2003) However, three months later, BAE announced acquired Alvis Vickers for ￡ 268 million. On this basis, BAE merged its RO Defence departments and Alvis Vickers, completed a re-integration of the ground system business of the United Kingdom, Sweden, South Africa, the United States was completed in the first half of 2005, thus became largest ground-based weapons manufacturer in Europe. (Alvis plc nd)Smoothly open the vast American defense market, BAE quickly cut into the 'anti-terrorism' in the rising demand for ground weapons business, BAE smooth sailing in the U.S. defense market with the infiltration of triphibian development.

 

3.3 Who is the next 'American' market?

 

At the moment, the traditional sense of the European and American markets in terms of wrestling with a financial crisis cut military spending, instability region as well as emerging market demand for arms is constantly rising. According to the statistics showed by Swedish Peace Research Institute, global military spending in 2010, Europe has become the only continent which reduce defense spending, fell by 2.8%, while in Asia, the Middle East, Africa, South America, respectively, rose to 1.4%, 2.5%, 5.2% 5.8%. (Economist 2012) Also according to the data of the Peace Research Institute, the U.S. arms exports amounted to $ 46 billion in 2011, nearly double compared to 2010. (2011)The military enterprises not only were not impacted from the financial crisis; on the contrary, it became another branch of the forces driving economic growth in the United States and Europe, it would further promote the global expansion of the military industrial enterprises.

 

Sweden, South Africa, Saudi Arabia, Australia and India are regarded as home market for BAE.(BAE Systems 2012) BAE once held 30% of the shares of Swedish SAAB group, sold Gripen fighter with SAAB. (O’Doherty 2011)Saudi Arabia is a rich patrons arms market, however lack of a sense of security, because of its neighbor Iran. The country's defense spending to GDP ratio is 1:10, ranking first in the world. In 2007, the Ministry of Defense of Saudi Arabia signed a trade of 72 Typhoon fighter with BAE, the initial value of the contract has reached 4.43 billion pounds, plus the cost of the supply of weapons and maintenance services, the contract value is expected to reach 20 billion pounds in the next 20 years, which is called 'Century orders.( Annual R本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。