The Importance of Establishing Private Military Company

Cite this

These days, when the war is introduced to society literally as the act of an affair, it is crucial to adequately distribute the national needs in the army inventories. As many people know, when the nation establishes a “war economy,” all the industry works to satisfy special war demands. In these obstacles, some companies find interesting ways to commercialize their service with a high margin rate and stay a demandable player on a monopsony market. By analyzing Private Military Companies (PMCs), it is crucial to state that in some specific markets, such as private aviation and smart portative defend systems, and countries are in need of private entities due to the R&D possibilities and narrow production focus.

Cut 15% OFF your first order
We’ll deliver a custom Military Leadership paper tailored to your requirements with a good discount
Use discount
322 specialists online

Firstly, when turning to Lockheed Martin, it is crucial to define the field of operating of this company. Established in 1960, the company is specializing in helicopters and aviation production for both army and citizens, weapon production, and selling it to the USA army (Lockheed Martin). The company’s structure did not change over time. The business specification is narrow, while the economic moat is wide owing to the company’s monopolistic position in the progressive aviation market. Finally, the biggest LMT’s competitive advantage is the scales of production, research advance, and government contracts, which enables it to be one of the biggest market stakeholders.

Secondly, L3 Harris Technologies is the second PMC, which is specialized in producing specific electronic devices, defend systems, and other high-tech military products. Initially, the company had the name: Harris Automatic Press Company and was established in 1890 (L3 Harris). The company’s structure significantly changed over time, especially in 2019, when the company became public. As a summing remark, I think that PMCs cannot influence a war expectation owing to their neutral position when it comes to risks and future perspectives.

Finally, the Private Military Companies are made to satisfy special governmental needs. Some industries are so narrow-focused that there is no need for the army to intervene in this sphere and make considerable capital expenditures, so that big companies, such as Lockheed Martin and L3 Harris Technologies, might benefit from implementing their activity at the country level. Besides their help to the army, these companies do not influence war expectations and situations due to the political neutralism of any of the PMCs.

References

L3 Harris. “Our History.” L3HarrisTM Fast. Forward., L3 Harris. n.d. Web.

Lockheed Martin. “Lockheed Martin: Our History.” Lockheed Martin, Lockheed Martin. n.d. Web.

On-Time Delivery!
Get your customised and 100% plagiarism-free paper done in as little as 3 hours
Let’s start
322 specialists online

Cite this paper

Select style

Reference

DemoEssays. (2022, August 8). The Importance of Establishing Private Military Company. Retrieved from https://demoessays.com/the-importance-of-establishing-private-military-company/

Reference

DemoEssays. (2022, August 8). The Importance of Establishing Private Military Company. https://demoessays.com/the-importance-of-establishing-private-military-company/

Work Cited

"The Importance of Establishing Private Military Company." DemoEssays, 8 Aug. 2022, demoessays.com/the-importance-of-establishing-private-military-company/.

References

DemoEssays. (2022) 'The Importance of Establishing Private Military Company'. 8 August.

References

DemoEssays. 2022. "The Importance of Establishing Private Military Company." August 8, 2022. https://demoessays.com/the-importance-of-establishing-private-military-company/.

1. DemoEssays. "The Importance of Establishing Private Military Company." August 8, 2022. https://demoessays.com/the-importance-of-establishing-private-military-company/.


Bibliography


DemoEssays. "The Importance of Establishing Private Military Company." August 8, 2022. https://demoessays.com/the-importance-of-establishing-private-military-company/.