Saab 2014 Annual Report Download - page 12

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SAAB’S BUSINESS
BUSINESS MODEL
Saab’s business model is adapted to the product
area, system complexity, customer group and
geographical market.
COMPLEX DEFENCE ORDERS
In complex defence orders, Saab directly supplies
the customer. ese comprehensive solutions,
oen also comprising training, maintenance,
support and service, are designed to maintain
functionality and cost eciency over the product’s
entire life cycle. Deliveries can continue for several
years aer development. ese systems are con-
gured and designed based on each customer’s
specic needs and therefore oen have a large
share of customer-nanced development. In addi-
tion, complex defence orders usually entail some
form of industrial co-operation. One example is
the development and delivery of Gripen.
SUBCONTRACTOR
Saab can also serve as a subcontractor to a partner
with primary contact with the end customer, e.g.,
when supplying subsystems. Several of Saab’s
systems, e.g., command and control systems, are
platform dependent and can be integrated with
Saab’s or other companies’ products and systems.
Another reason for being a subcontractor can be
that cost or other factors make it an eective
strategy to build a presence in a market.
VOLUME ORDERS
Maintenance, support and training can also be
sold separately, outside large defence orders.
Consumables and spare parts also fall into this
category. ese products and solutions are usually
sold directly to the customer. Some products and
services are delivered the same day an order is
placed, while others have a lead time of over a year.
ese orders involve less customer-nanced deve-
lopment than complex systems. Examples include
most of Saab’s civilian oering, as well as products
sold in large volumes, such as ammunition.
Saab’s market offering consists of complex systems
involving a great deal of research and development,
alongside high volume, repeat order businesses.
Repetition
Complexity
Dimensions of Saab’s business
COMPLEX DEFENCE ORDERS
Complex systems with long delivery
times, e.g., Gripen and Erieye.
SUBCONTRACTORS
Subcontractor of civilian and military
command and control systems, e.g.,
Remote Tower and 9LV.
VOLUME ORDERS
Repeat orders for maintenance, repairs and
consumables, e.g., ammunition and technical
consulting services.
8 – SAAB ANNUAL REPORT 2014