Businessmodel of Textron

Customer Segments

Textron has a diversified market business model, with customer segments that have very different needs. The company targets its offerings at firms in the aerospace and defense, specialized vehicles, turf care, fuel systems, and tools and test equipment industries. In 2015, U.S. government clients accounted for approximately 24% of its revenues.

Value Proposition

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

The company has embraced innovation throughout its history. It has been the source of several cutting-edge technologies and industry-firsts, including major evolutions in aircraft, electrical vehicles, rotorcraft, armored vehicles, tools, and automotive systems.

The company has established a strong brand due to its success. It most recently generated annual revenues of $13.4 billion and has 35,000 employees in over 25 countries. It maintains many prominent brands, including Bell Helicopter, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Bad Boy Off Road, Textron Systems, and TRU Simulation + Training.

Channels

Textron’s main channel is its direct sales team. It also sells products through a network of independent sales representatives. The company promotes its offering through its website, social media pages, and participation in trade shows and conferences.

Customer Relationships

Textron’s customer relationship is primarily of a self-service nature. Customers utilize its products and services while having limited interaction with employees. Its website provides answers to frequently asked questions. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Textron’s business model entails designing, developing, and manufacturing its products and delivering its services to customers.

Key Partners

Textron’s key partners are the suppliers that provide it with the materials and equipment it needs to manufacture its products. Its suppliers are categorized based on relevant business unit, as follows:

• Bell Helicopter Suppliers
• Beechcraft Suppliers
• Cessna Suppliers
• E-Z-GO Suppliers
• Greenlee Suppliers
• Jacobsen Contact Information
• Kautex Suppliers
• Textron Systems Suppliers
• Lycoming Suppliers ### Key Resources

Textron’s main resources are its human resources, who include the engineers and scientists that design, develop, and/or manufacture its products and the sales personnel that promote them. It maintains important physical resources in the form of 59 manufacturing plants located throughout the United States and 52 plants based outside the U.S.

Cost Structure

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

Revenue Streams

Textron has two revenue streams:

• Manufacturing Revenues – Revenues generated from the sales of products upon delivery.
• Finance Revenues – Revenues generated from interest on finance receivables, capital lease earnings, and portfolio gains/losses.