Author Topic: SpaceX Research Project Question (Read 4389 times)

ejurkovic93 · « **on:** 10/30/2014 07:57 pm »

Hi everyone! I'm a student at the University of Notre Dame and I'm working on a small research project about SpaceX.

I need to identify and issue they are facing that I could then do a case analysis on, resulting in some sort of recommendation on how they could solve it.

I need to identify the issue through 3 of the following 4 means
-Conversation
-Online Forum (here)
-Annual Report
-New Headlines

I figured the best way to get info from an online forum is to ask. So, do any of you know of any issues or problems facing SpaceX that I could research and hopefully make a recommendation on? Also, if you know of any articles related to that issue I would love to see them. I am planning on calling their offices tomorrow and am about to send them an email. I figured it might be best to have a few talking points instead of just cold calling, hence asking here first.

Any info is greatly appreciated. Thanks very much!

Andy USA · « **Reply #1 on:** 10/30/2014 09:36 pm »

This is a news site before it's a forum, so here is a good place for that too.

http://www.nasaspaceflight.com/tag/spacex/

inventodoc · « **Reply #2 on:** 10/30/2014 09:38 pm »

This sounds like an exciting project. Consider posting your report here.

James54 · « **Reply #3 on:** 10/30/2014 09:48 pm »

It would be helpful if you could tell us what area of study (i.e. business or engineering) this project is for.

Joffan · « **Reply #4 on:** 10/30/2014 11:24 pm »

Welcome to the forum - SpaceX are working on so many things at present that in some ways you have a target-rich field to choose from. However there may also be quite a lot that they don't wish to make public right now, and they are busy people so may not have a huge amount of time immediately.

Their most immediate engineering challenges include
- Dragon 2
- Falcon Heavy
- First-stage recovery
- Additional launch pad development

Their business challenges include
- transition in company size
- opening up new sites
- production ramp-up
- legal challenges eg. to DoD

I would allow more than a day between your e-mail and your arrival at the offices. You should at least allow them to respond to the e-mail with a suggested time I'd think.

Robotbeat · « **Reply #5 on:** 10/30/2014 11:31 pm »

Reliably producing propellant using resources on Mars.

ejurkovic93 · « **Reply #6 on:** 10/30/2014 11:46 pm »

Hey guys, thanks so far.

The problem would howl fully be more business related. I am not an engineer so I have no idea if I could gather business info on their technical products.

I was thinking of looking at their competition, maybe suggesting ways they could differentiate or work to secure more contracts. Didn't they just have a big competition with Boeing for a contract?

Of course that's just a thought, I just really need something I can get some actually research done for so I can suggest something!

Nomadd · « **Reply #7 on:** 10/30/2014 11:55 pm »

Their biggest problem to overcome is Richard Shelby.

Garrett · « **Reply #8 on:** 10/31/2014 09:56 am »

One big issue: balancing their CEO's reasons for starting the company (going to Mars) and the company's ultimate goal (again, going to Mars) with a viable business plan (for the moment it's the "space truck company" plan) that keeps them cash flow positive.

Nomadd · « **Reply #9 on:** 10/31/2014 12:26 pm »

Quote from: Garrett on 10/31/2014 09:56 am

One big issue: balancing their CEO's reasons for starting the company (going to Mars) and the company's ultimate goal (again, going to Mars) with a viable business plan (for the moment it's the "space truck company" plan) that keeps them cash flow positive.

Musk hopes to pull a Henry Ford. The common assumption is that the best way to make money is to sell your product for the highest price you can get. Ford, and Musk, think the best way to run a business is to make your product available to everybody. The F9 and FH alone could capture the lion's share of the launch market. If the Rs pan out, "catch up" is putting it lightly for the other companies.

Dudely · « **Reply #10 on:** 10/31/2014 03:22 pm »

In the same vein as the last two posts;

You should do your report about how they are like Amazon, in that they develop and sell their product at the lowest price possible in order to undercut the competition. There are quotes from Elon which state that he hopes to use this pressure to create a feedback cycle where technology is continually improved and improvements in other fields are continually applied to aerospace in the same way they are in the computer hardware and telecommunication industries. Sort of a "Moore's law of space", if you will.

ejurkovic93 · « **Reply #11 on:** 10/31/2014 04:50 pm »

Hey guys,

Based on the info I've found and what you are all saying I think I'm going to structure it like this:

Basically the general issue would be the competitive environment they find themselves in. My solutions/recommendations will be based around ways they can increase their overall competitiveness in the market.

To do that I'm going to incorporate some of the ideas you have all mentioned: Ways to work through legal problems, finding ways to undercut competitors with tech and business practices, focusing on market areas where they excel and others are less focused, etc.

With this I have a general issue base and then even if one of those sub-issues turns out to be inconsequential or hard to find, I can still use the other ones to make a good report.

I've really found this helpful, so now that you know my current plan, please feel free to continue to suggest. And thanks again this is really great and very helpful.

One final question would be: How does their competition compare to them now, and how is competition an issue for them in general? It would be good to have something on that so I can cite it in my general issue proposition (as the aforementioned "online forum/social source").

Robotbeat · « **Reply #12 on:** 10/31/2014 05:12 pm »

Their competition is competing largely on reliability and track record and schedule consistency.

Reliability may be most thoroughly demonstrated with track record.

Track record puts SpaceX at 8 launches for their most recent version of Falcon 9 (v1.1), launching at a rate of about 7 per calendar year (before that it was 3 per year, before that even less). So they have a big manifest but have been slow (up until now) to get them off the ground, which is the schedule risk portion. 12 launches next year will help eleviate that, and by 2016 they should have caught up with their manifest. They will also likely have a much longer track record of successful launches by then.

SpaceX has a lot going for them right now as their primary roadblock, which is launching in a timely manner, is being addressed. Also, they're building two more launch pads which will give them more flexibility and the ability to use one pad primarily for NASA manned launches, one pad for cargo and unmanned NASA launches, and the Texas site can be devoted to commercial, geosynchronous launches while also being solely dedicate to serving SpaceX, which relieves so e of their schedule constraints. NASA really likes that they can devote Lc39a to manned launches (and occasional Falcon heavy), and having a private launch site in Texas will make it easier to serve foreign nationals since there won't be as many security restrictions like there is at LC40, etc.

Reusability is a challenge for launch companies because even though the per launch cost is lower, the up-front development cost is higher and there's still the capital cost of the factory and so it usually only makes sense to do reusable rockets if you have a high launch rate: 8 launches per year for first stage reuse and at least 40 launches per year for full reuse of all stages. SpaceX is investing in these areas anyway, with the hope that low cost will spur demand through market elasticity. In particular, SpaceX believes that people will want to go to Mars, but they realize the price must be much lower. SpaceX, as a privately held company, can invest in this long-term goal without worrying too much about what the stock market thinks. They don't have to pay dividends and instead can use any profits to invest in this future market. This is definitely not a sure thing for SpaceX, but it is the purpose for which they were founded (they don't exist solely to make a profit for the investors).

ejurkovic93 · « **Reply #13 on:** 10/31/2014 05:36 pm »

Wow that was extremely helpful, thank you, really. You guys have all been great.

arachnitect · « **Reply #14 on:** 10/31/2014 06:01 pm »

Quote from: ejurkovic93 on 10/31/2014 04:50 pm

One final question would be: How does their competition compare to them now, and how is competition an issue for them in general? It would be good to have something on that so I can cite it in my general issue proposition (as the aforementioned "online forum/social source").

This might help, FAA commercial space transportation forecasts.
https://www.faa.gov/about/office_org/headquarters_offices/ast/media/2013_GSO_NGSO_Forecast_Report_June.pdf