CRM and CSM SpaceX

Final Integrated Paper: SpaceX

Overview

SpaceX defines itself as a designer, manufacturer, as well as launcher of advanced spacecraft as well as rockets (SpaceX, 2021). As the company further points out, it was established in the year 2002 with the overall mandate of revolutionizing space technology. Some of the spacecraft and aerial vehicles that the company has developed in the past are inclusive of Falcon Heavy, Falcon 9, Dragon, and Starship. The company’s founder, Elon Musk, happens to be a talented innovator and entrepreneur.

It is important to note that as of the second week of June 2021, the company had made a total of 127 launches (SpaceX, 2020). On the other hand, as it points out on its website, it has made a total of 89 landings and reflown 68 rockets. Since it was established, the company has achieved great milestones. For instance, as it further points out, “it is the only private company capable of returning a spacecraft from low-Earth orbit, and in 2012 [its] Dragon spacecraft became the first commercial spacecraft to deliver cargo to and from the International Space Station” (SpaceX, 2021). With this in mind, at present, the company’s typical customer base consist of National Reconnaissance Office, NASA, U.S. DoD, etc. These are no mean accomplishments for a privately-owned enterprise. The company has close to 5,000 employees. It should also be noted that as Sheetz (2021) points out, since its establishment, the company has managed to rake in $1.9 billion in funding. As of the year 2021, the company had a valuation of $74 billion (Sheetz, 2021). Given the company’s revenues at this time, this appears to be a rather high valuation. The high valuation has in this case been associated with future high revenue expectations (Trefis, 2021).

As of the year 2020, SpaceX reported total revenues of 1.2 billion (Trefis, 2021). To a large extent, the company has only one key source of revenue at present. The said source of revenue happens to be the space launch service (Trefis, 2021). In addition to launching satellites into earth’s lower orbit, this particular service also makes it possible for cargo to be transported both from (and to) the International Space Station. Being a privately-funded enterprise, SpaceX is not publicly traded at this point in time. For this reason, the stock price of the said enterprise will not be included in this particular discussion. It should, however, be noted that as Sheetz (2021) observes, SpaceX has in recent times “raised the new funds at $419.99 a share.” At present, the company has its headquarters in Hawthorne, CA.

Enterprise Resource Planning (ERP)

Without a robust ERP, any organization would find it difficult to achieve interdepartmental collaboration. This is more so the case given that as Baltzan (2019) observes, collaboration between departments is facilitated by ERP systems – effectively making it possible for persons within the organization to not only communicate in a seamless manner, but also have access to crucial data to aid decision making. SpaceX’s President and COO, Gwynne Shotwell, points out that internal communication has been identified as one of the most crucial factors in as far as the continued success of the company is concerned (Stillman, 2014). In a clear indication of the company’s directed efforts to ensure that its various units embrace a harmonious working relationship, and aid efforts to implement an ERP system. Shotwell is categorical that the company has deliberately embraced a flat structure (Stillman, 2014). Previous research has indicated that ERP structure is influenced by organizational structure. In the words of Zareravasan, Nabavi, and Mansouri (2015), “the integration and standardization imposed by most ERP systems may not be suitable for all types of organizational structures and it seems that some characteristics in organizational structures affect the likelihood of implementation success or failure” (75).

Supply Chain Management (SCM)

SpaceX has managed to achieve vertical integration – in which case we could conclude that the company largely controls its supply chain. This happens to be a prominent feature of all Elon-owned enterprise. It should be noted that as Greg (2015) indicates, SpaceX has the capability to not only develop, but also manufacture a huge percentage of the most crucial items. Indeed, in the words of the author, the company happens to be “the primary actor in all phases of product lifecycle, including vehicle design/engineering, component manufacturing, software development, subsystem assembly, vehicle integration, vehicle testing, launch operations, and on orbit operations” (Greg, 2015). Baltzan (2019) is categorical that supply chain management systems could be instrumental in efforts to further enhance an organization’s bottom-line. In the case of SpaceX, the deliberate move to attain a high vertical integration level has come in handy in keeping costs in check.

Customer Relationship Management (CRM)

If a company is to remain competitive in a highly competitive business environment, it should be skilled in the management of its relationship with customers. CRM systems are instrumental in this endeavor. This is more so the case given that they help in efforts to streamline processes, connect to customers, and further enhance business relationships. One of the companies that has successfully put in place a robust CRM initiative is FedEx Corp. In this case, the company remains committed to deploying the relevant software so as to further enhance its perspectives about its diverse clientele (Songini, 2000). Here, the overall goal happens to be the ability to detail the needs of customers so as to come up with the best services to address the said needs (Songini, 2000). Similarly, Light (2020) makes an observation to the effect that to bag satellite launch contract from the Pentagon, SpaceX had to understand the specific needs and goals of this particular client and pursued “consistent satisfaction of customer expectations” (Light, 2020). In deploying the ideals of CRM, the company was able to gain insight into the needs of this particular client and adapt its processes accordingly so as to meet the desired quality standards.

Strategic Initiatives Allowing Competitive Advantage

In seeking to assess SpaceX’s competitive advantage, we would essentially be highlighting factors that give the company greater ‘staying power’ in its industry. There are many factors that set SpaceX apart from its competitors. To begin with, as has been highlighted elsewhere in this text, the company has managed to achieve a high degree of vertical integration. This effectively means that the company is less susceptible to supply disruptions. It also means that via economies of scale, SpaceX can be able to achieve lower costs. Its cost-leadership strategy could also be deemed a competitive advantage on its own. Of the handful of companies that have tried to actualize low-cost space flights, SpaceX has been the most innovative on the cost front. This is more so the case given that the company found a way to reuse spacecraft – with the company pointing out that reusability is one of the most effective way of slashing costs (SpaceX, 2021). The standard practice has been to let a rocket burn upon re-entry into the earth’s atmosphere. It is on the basis of this and many other factors that Hands and Miele (2018) are convinced that “no other competitor has come close to threatening SpaceX’s position as a cost leader.”