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A Methodology to Assess the Capabilities of a Cluster of Companies: The Case of "Torino Piemonte Aerospace"
2012-03-21
In any new aircraft development program there are many important design decisions that determine profitability potential. The key to making new aircraft profitable is to design features that will command more money than the cost to provide them within the market's ability to absorb them. The business model in this paper shows how to predict or find: 1) the costs to provide various aircraft features; 2) the values that aircraft buyers place on these features; 3) the amount of money that buyers have to commit to them, 4) the open spaces in the market in which to place new designs and 5) the predicted profits from new designs. In this process, this paper extends previous work on the law of value and demand, which states that attributes determine value; value determines price; and that price determines demand. This four-dimensional, non-negative system hosts a business model that describes the features needed to enable aircraft designs to go from concepts to profitable assembly lines.
