Karla Andrea Barrientos Rivera

200315737
1.

Where on the S-Curve was Adam Aircraft in regard to (a) using

composite materials and (b) completing the FAA certification process?
Justify your choices.
a) According to the life cycle of a Company, when Adam Aircraft
built its first design the M-309 they used composite materials.
Because of that, according to the life cycle of the company Adam
Arircraft was in the starting point of the S curve when they were
using composite materials.
b) Due to the fact that without getting the certification Aircraft is
not able to sell formally their airplanes, the time when they get
their certification is when the curve starts turning into the
exploitation or growth stage.

2. Using the data in the Excel file above, sketch a dominant design graph
for the period from 1952-2002. Assume that Companies
Manufacturing represents the number of active, independent general
aviation manufacturers in that year.

Number of manufacturing companies

20
15
10
5
0

Number of
manufacturing
companies

3.

According to dominant design theory, explain what was happening in

this industry between 1952 and 2002 in terms of how the industry
structure was changing.
The industry between 1952 and 2002 was still growing and changing,
there were new entrants coming into the market as well as leaving it.
Between this period there was not a dominant design. Because of that,
we can see that there is not a clear curve representing the dominant
design theory. The companies had too high costs of operations and the
demand for aircrafts was decreasing because the aircrafts did not meet
the needs of the demanders and they were too expensive. I the graph we
can see that there is a significant number of companies entering the
market in 1994, this was due to the General Aviation Revitalization.

4.

During what periods between 1952 and 2002 was

advantageous to enter this industry as an entrepreneur? Why?

it

most

According to the dominant design theory, the best time to enter the
market is as soon as possible, when the first companies are starting to
enter the market because those first companies are most likely to remain
over time. Due to that fact, the best time to enter the market would be
from 1952 to 1965 when there was not too much competition.
5.

Develop an action plan explaining what Adam Aircraft should do at the

end
of
the
case.
(action plan: 1. options, 2. select best option, 3. provide schedule of how
to proceed)

Options:
a) Wait for the certification of the FAA for the two airplanes (A500
and A700) and keep building the third aircraft (which is a risk
because they do not know for sure how the market will respond
to the two airplanes).
b) Wait for the certification of the FAA for A500 and A700, stop the
construction of the third airplane and invest on a marketing
campaign for the two airplanes they already have built.
Best option:
The best option would be b because as the company is starting, they do
not know how the market will react to A500 and A700. They are predicting
that the market will respond positively but many times the market behaviour

is unpredictable and they have to think about the risks of the business. As an
entrepreneur is important to take risks but it is also important to analyze the
alternatives the company has to remain in the market.
Scheduling:
2003: Invest on a marketing campaign; attract as much consumers as
possible before the certification of A500 and A700.
2004: As soon as they get the certification for A500, they should analyze the
market response and decide if it is convenient to keep with the construction
of A600.