1、9/25/201311TheDIBPast,Present,Future(2008)ClicktoeditMastertitlestyleThe U.S.Defense Industrial Base(DIB)does not function like a“normal”free marketwith many buyers,many suppliers&market-driven price competitionIt is highly regulated by FARs,DARs,ITAR,Congress,etc.It has a single(monopsony)customert
2、he U.S.government(also the regulator)&a few oligopoly suppliers in each market segmentMarket concepts such as“competition,”“price,”“buyer”and“seller”do not apply(Merton Peck&Frederick Scherer,1962)The U.S.government&DoD have never had a coherent,long-term strategy for managing the DIB as a vital strategic asset After Les Aspins 1993“last supper,”the defense industry merged 37 primes into 5(LM,NG,Boeing,GD&Raytheon)
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