Businessmodel of Harris Corporation

Customer Segments

Harris Corporation has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at firms in the government, defense, and commercial sectors. The government sector accounted for 76% of revenues in its 2016 fiscal year.

Value Proposition

Harris Corporation offers two primary value propositions: innovation and brand/status.

The company has embraced innovation throughout its history. It was formed out of the need to develop a new technology more advanced than existing offerings – specifically, a faster, better printing press. Other innovations of note include advanced battlefield communications and the communications technology used by the earliest astronauts to speak to mission control.

The company has established a strong brand due to its success. It has 21,000 employees worldwide and generated $7.5 billion in revenues in 2016. It serves customers in approximately 100 countries. It is the largest private-sector employer in Brevard County, Florida. Lastly, it has won many honors, including recognition as one of the top 100 federal contractors by Defense News.

Channels

Harris Corporation’s main channels are its direct sales team and its network of dealers and distributors. The company promotes its offerings through its website, social media pages, and participation in events such as expos, forums, summits, symposiums, and conferences.

Customer Relationships

Harris Corporation’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees.

Key Activities

Harris Corporation’s business model entails designing, developing, and manufacturing its products for customers, as well as delivering associated services.

Key Partners

Harris Corporation’s key partners are the suppliers and subcontractors that provide it with the raw materials and parts it needs to manufacture its products. These items include electronic components, printed circuit boards, metals, and plastics. It also works with a network of dealers and distributors that promote and sell its products and services in order to expand its reach.

Key Resources

Harris Corporation’s main resources are its human resources, who include the over 9,000 scientists and engineers that design, develop, and/or manufacture its products. It maintains important physical resources in the form of manufacturing, warehousing, and research/development facilities across the U.S., Canada, Europe, the Middle East, Central and South America, Africa, and Asia. Lastly, it places a high priority on its intellectual property, with 1,900 issued and 200 pending U.S. patents, as well as 1,700 issued and 600 pending foreign patents, as of July 2016.

Cost Structure

Harris Corporation has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of product sales and services, a variable expense. Other major drivers are in the areas of sales/marketing and administration expenses, both fixed costs.

Revenue Streams

Harris Corporation has one revenue stream:  revenues it generates from the sale of its products and services to clients. Sales mostly occur through the signing of development and production contracts.