Businessmodel of SpaceX

Customer Segments

SpaceX has a niche market model, with a specialized customer segment. The company markets its offerings to public and private organizations that want to transport items to space. Its projects have included commercial satellite launch, space station resupply, and government national security missions. Specific clients have included OrbComm, the U.S. Air Force, and MDA Corporation.

Value Proposition

SpaceX offers three primary value propositions: accessibility, performance, and brand/status.

The company has created accessibility by enabling travel to space for relatively inexpensive means. This has provided transport opportunities for many organizations seeking exploration.

The company has demonstrated strong performance. It has achieved numerous milestones, including the following:

• Having the first privately-funded, liquid-fueled rocket to reach orbit around Earth
• Being the first private company to successfully launch, orbit, and recover a spacecraft
• Being the first private firm to send a spacecraft to the International Space Station
• Being the first private firm to send a satellite into geosynchronous orbit
• Overseeing the first landing of a first stage orbital capable rocket
• Overseeing the first water landing of a first stage orbital capable rocket The company has built a strong brand. As the first private company to actively explore space travel, it is well-established and well-known. It has gained further prominence through its association with Elon Musk, a high-profile entrepreneur who co-founded PayPal and founded Tesla.

Channels

SpaceX’s main channel is its business development team, through which it acquires most customers. The company promotes its offering on its website and through its social media pages.

Customer Relationships

SpaceX’s customer relationship is primarily of a dedicated personal assistance nature. The company works closely with clients as it oversees the launch, orbiting, and recovery of spacecraft.

Key Activities

SpaceX’s business model entails designing, manufacturing, and launching rockets and satellites.

Key Partners

SpaceX’s key partners are the suppliers who provide the parts for it to manufacture its spacecraft. The company has more than 3,000 of these partners, with 1,100 of them making weekly deliveries.

Key Resources

SpaceX’s main resource is its technology staff, which includes software, hardware, structural, and propulsion engineering employees. These employees work in its rocket development facility in McGregor, Texas; rocket testing facilities in Texas and New Mexico; launch facilities at Cape Canaveral Air Force Station, Vandenberg Air Force Base, and Kennedy Space Center; satellite development facility in Redmond, Washington; regional offices in Texas, Virginia, and Washington, D.C.; and headquarters in Hawthorne, California. As a startup, SpaceX has relied heavily on funding from outside parties, raising $1.25 billion from 11 investors as of January 2015.

Cost Structure

SpaceX has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent product enhancements. Its biggest cost driver is likely cost of goods, a variable cost. Other major drivers are in the areas of research/development and sales/marketing, also fixed costs.

Revenue Streams

SpaceX has one revenue stream: sales of the rockets, satellites, and merchandise it manufactures. The Falcon 9 rocket costs $62 million. The Falcon Heavy rocket costs $90 million. Pricing for the Dragon rocket is not currently available. The company’s website includes a store where it sells SpaceX-branded T-shirts, outerwear and accessories with a wide range of prices.