Challenging the Status Quo
- Paper number
IAC-08.E6.1.1
- Author
Mr. Lawrence Williams, SpaceX, United States
- Year
2008
- Abstract
Industry innovation typically comes from new entrants, rather than established players with entrenched business models and legacy costs. However, it is a difficult (and rewarding) challenge for entrepreneurs to disrupt an established industry. The millstone around the neck of the space industry has consistently has been the prohibitive cost of the launch. The space transportation industry has historically been dominated by national governments, with only a few government-funded organizations possessing the capability to place objects into Earth-orbit. It is a widely accepted principle that governments and government-funded organizations tend to be less efficient than their private sector counterparts. To date, virtually every commercial launch venture has had to rely largely on government support, funding, and subsidization. Additionally, these ventures have been plagued by poor execution and/or a lack of sufficient resources. The overall track record for U.S. commercial providers has been weak with respect to providing low-cost, reliable access to space. For a number of reasons, the industrial structure and forces governing competition in the space transportation industry have lent themselves to this outcome. SpaceX was formed to break the escalating cost spiral in the space industry and is well-positioned to have a disruptive effect on the space transportation business and fundamentally change the space transportation market. Historical perspective is provided, but discussion focuses on SpaceX’s approach and accomplishments, potential impact on the current market, and future markets that could emerge.
- Abstract document
- Manuscript document
IAC-08.E6.1.1.pdf (🔒 authorized access only).
To get the manuscript, please contact IAF Secretariat.