industry
telecom
Satellite Communications Market Evaluation
Client Problem
- Major aerospace firm interested in supplying satellites for a new communications venture
- Multiple ventures being undertaken in satellite communications field
- No clear indication as to potential profitability of market, and therefore demand for satellite suppliers
Project Objectives
- Determine profit potential for satellite communications market
- Quantify sensitivities to assumptions about costs to supply and operate satellites
- Highlight issues around market development and timing
Approach
- Identify key drivers of underlying costs for Satellite communications vs. other competing technologies
- Identify those markets (services, geographies) for which satellite communications will be the cost advantaged technology
- Project price points which will optimize profitability
- Aggregate markets to determine potential profitability
- Calibrate with top-down market estimates
- Game with different inputs to understand key cross-over points
Results
- Picture of expected profitability
- Targets of focus clients' efforts on development issues
- Understanding of key market development indicators
