Harris Corp. operates in the communications equipment industry. They provide solutions to meet a wide range of communications needs, and had until 2015 divided the company into market segments: communication systems, critical networks, electronic systems, and space and intelligence systems. The company’s largest customer is the U.S. Government, with no other customer representing more than 4% of their client base. Government revenue has been declining over the past five years due to cutbacks, sequestration, and changes to the contract bidding processes. In 2015 U.S. Government revenues represented 64% of total revenue, 67% in 2014, 67% in 2013, 70% in 2012, and 78% in 2011. This change in revenue streams, and increased competition for fewer U.S. Government contracts has led to some changes to the company’s goals. …show more content…
Government contracts Harris Corp. set a goal for expanding further into international markets, R&D capabilities, and provide a greater product lineup. Harris Corp. has been successful in the growth of international business. In 2015 international revenue represented 31% of total revenue, 30% in 2014, 26% in 2013, 24% in 2012, and only 19% in 2011. The greatest growth has been in underdeveloped countries. This has led to increased risk due to fluctuating currencies, unrest, and changing government regulations and policies. R&D capabilities have been increased by reinvesting 5.5% of revenue in R&D; up from 4% in 2013. Then in May of 2015 Harris Corp acquired Exelis Inc. in order to expand its product line up. This dramatically expanded the scale and number of contracts Harris Corp. is capable to compete for, as well as provided new technological offerings. Harris Corp. thus far appears to have made successful strides towards achieving their