Table of Contents
•Finmeccanica has seen revenue in its Defence and Security Electronics business unit fall from 2012 to 2013 because of reduced military and government spending in the European and US markets.
•Whilst the company has a strong presence in several markets, diversification of its customer base internationally will play a key role in its continued development.
•The company’s commitment to organic growth and research and development (R&D) spending will continue to solidify its position in the market as a high-end security technology supplier.
•Its ability to market dual-use (military and security) technologies to new customers, including those in the civil market, will be critical in enhancing its international position.
•Finmeccanica will continue to leverage partnerships with companies such as Cisco to grow security/IT capability and international presence.
•Increasing competition in the security market from more-focused security providers will also dictate a more-concentrated security product line and market offering.
•The company's current security strengths lie in the provision of secure communication solutions, network integration, and cybersecurity services through its Selex ES and DRS Technologies.
Historical Revenue Growth
Key Takeaway: The company's Defence and Security Electronics business unit has seen progressive revenue drops since 2010—a direct result of defence budget cuts in Europe and the United States, with the latter particularly affecting DRS Technologies. Revenue in the firm’s Selex ES unit fell as a result of this combined with fewer orders being received in the Smart & Security Systems area.
Key Corporate Strategies
•Finmeccanica will look to enhance its presence in the civil market owing to its “development of cutting-edge technologies also applicable to the daily activities of the community.”
•Finmeccanica also aims to internationalise its target market through targeted partnerships, strengthen its position as a high-technology leader, and invest in adjacent businesses that complement its defence and security portfolio.
Mergers, Acquisitions, and Partnerships
•DRS Technologies (2008)
Offices or Country Alliances
•Telespazio, joint venture (JV) with Thales (space services; 1961)
•Thales Alenia, JV with Thales (space services; 2006)
•Eurotech, partnership (networking and integration; 2006)
•Safran, partnership (road enforcement and safety; 2011)
•Cisco, partnership (IT integration and development; 2013)
•International Multilateral Partnership Against Cyber Threats (IMPACT), partnership (cybersecurity; 2014)
New Products or Capabilities
•Automated Fingerprint Identification System (AFIS)
•Auto-Detector (automatic number plate recognition [ANPR] solution)
•Archangel (actively managed security service)
•Archimedes (harbour protection situational awareness system)
•ElettraSuite TETRA Communications FireEye (anti-malware solution)
•Integrated Intelligence System (IIS)
•Patrol Support System (biometric and smart card scanner)
•SCADA Dragonfly (critical national infrastructure [CNI] & industrial cyber protection)
•Sentinel Mobile (secure mobile voice and data communications)
•Open Source INTelligence (cybersecurity centre)
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