1. Industry Structure and Analysis of Suborbital Point To Point Transportation Ashley Chandler Zachary Grunder My-Linh Truong Jake Gamsky Joshua Nelson Kerry Fessenden Jules Feldhacker Michael Piccone Julie Mason Stuart Tozer Daniel Pastuf ^ Spherical Spacecraft

2. The Problem There is a lack of high speed international transportation. Transportation from US to Europe, and US to Asia using existing technologies can take 8-10 hours. Problem Force 1 Force 2 What / How Force 3 Force 4 Force 5 Summary

3. The Problem Problem Force 1 Force 2 What / How Force 3 Force 4 Force 5 Summary There are commercial and governmental demands for responsive delivery of persons and cargo with critical time restraints, for example: – Emergency response/relief – Medical transportation – Legal documents – Military applications (developmental funding)

4. Problem Force 1 Force 2 What / How Suborbital Point 2 Point What we provide: Transportation of people and cargo from point to point at an order of magnitude faster than pre-existing transportation technologies. Our customers: Civilian and commercial entities requiring rapid transportation of persons and cargo from point to point. Force 3 Force 4 Force 5 Summary

5. How Problem Force 1 Force 2 What / How Force 3 Force 4 Force 5 Summary We are the suborbital equivalent of an airline company, providing a service with vehicles purchased from an outside supplier Horizontal takeoff via a first stage aircraft, hybrid rocket to suborbital trajectory and non-powered landing at existing landing facilities around the world Both scheduled and on demand services

6. Problem Force 1 Force 2 What / How Force 1: Entry Barriers Force 3 Force 4 Force 5 Summary Advantages: – Costs of switching to our service are low, i.e. buying a ticket online – Government policy is currently developing with the industry and is not restrictive Disadvantages – Capital Requirements: Huge initial investment, need infrastructure and regulations – Economy of Scale: easier for bigger companies to get involved

7. Problem Force 1 Force 2 What / How Force 2: Intensity of Competition Force 3 Force 4 Force 5 Summary Advantages – At present no competitors providing this speed of transportation for non-digital payloads. Challenges – Strategy chosen can greatly influence revenue and level of competition – New, developing industry, initial growth much slower than initial estimates.

8. Problem Force 1 Force 2 What / How Force 3: Pressure from Substitutes Force 3 Force 4 Force 5 Summary Advantages – Order of magnitude faster transportation of physical payloads over substitutes. Challenges – Numerous substitutes at lower cost, but longer delivery times, example: airline, train, car, boat, etc.. – Digital payloads can be delivered at almost no cost, instantaneously via the internet and similar technologies.

9. Problem Force 1 Force 2 What / How Force 4: Buyers Force 3 Force 4 Force 5 Summary Advantages – Few competing services Challenges – Dependent on a small, powerful buyer market – Level of demand and size of buyer market unlikely to change for the foreseeable future

10. Problem Force 1 Force 2 What / How Force 5: Suppliers Force 3 Force 4 Force 5 Summary Advantages – Many unemployed trained specialized space professionals from Shuttle and other space programs. Challenges – Suppliers are small specialized groups of professionals, hard to replace at the last minute (example: United Space Alliance). – This leads to strong supplier groups – Influence can be limited by maintaining a diverse supplier base

11. Problem Force 1 Force 2 What / How Summary Force 3 Force 4 Force 5 Summary While there are still technical issues to be studied and resolved, there do not seem to be any game-stopping issues from a business or economic standpoint. Relative strength of 5 forces in decreasing level of influence are: – Barriers of Entry – Buyers – Suppliers – Intensity of competition – Pressure from substitutes