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However, in the rapid rise of emerging markets, mergers and acquisitions surgery has gradually force the incompetent. In one hand, in majority of developing countries, military science and technology is relatively backward, it is hard to find quality acquisition targets; in the other hand, for the maintenance of local military industries, there exist barriers to mergers and acquisitions due to public policy. Therefore, the weapons sales will become an important means of BAE expansion in emerging markets. Fortunately, the expansion of cross-border market, BAE has its own outstanding place, such as its innovative technical capabilities keep up with the pace of the market, it lunch non-lethal laser weapons in the period of rampant piracy, make tanks disappear on enemy’s radar incarnation as a pacing of cattle and sheep, all the details reflects research and development capabilities of accurate understanding of the customer psychology. The strategy of providing lifetime warranty for military products is also sharp weapon for competition conquers new markets, extending the profit chain.

Conclusion

The repeal of the merger between BAE and EADS, probably was just a small flaw part of the BAE global expansion plans in the global defense market; even if the termination of their marriage, it can not stop BAE’s footsteps for becoming the giants of the global defense market. For global companies, making decision in the situations of good timing, geographical convenience and good human relations is key elements for succeed of global strategy; while BAE is good at this point. Approaching the highest profit is the primary goal for a company, BAE reducing costs by selling West Chester armored vehicle business. Acquisition is an important method for it to expand its defense manufacturing all over the world; after Cold Wars, BAE develop fast open the U.S. defense market in short period, the defense spending budget of United Stated ranks first in the world until now, thus United Stated became the most important defense market for BAE. In recent years, BAE’s focus its R & D turned to ground weapons, keep up with the pace of industry leader General Dynamics In September 2004, BAE acquisition of Alvis Vickers, largely reduced the competitiveness of General Dynamics. Nowadays, BAE turn its attention to Asia, the Middle East, Africa, South America as target market, due to their defense spending keep rising these years; in addition, Sweden, South Africa, Saudi Arabia, Australia and India are regarded as home market for BAE, especially in India, The cooperation of BAE Systems and Mahindra & Mahindra Ltd is to achieve a win-win situation in the fierce market competition. In the future trends of the defense industry, BAE should maintain the stability of the existing joint ventures, also actively develop new markets, expand market share, achieve greater benefits.

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