September 19, 2021

Going vertical: How emerging technologies will power a new value chain

As advanced air mobility (AAM) businesses move from initial concept to at-scale mobility platforms, a new type of value chain will emerge—one that will be quite different from the traditional aerospace value chain. To capture value in this space, leaders will need a strong understanding of how value pools will shift over time and clear strategies for where to play. The shift could play out in a variety of ways: see exhibit for one possible scenario. In addition to the revenue breakdown, organizations will also need to understand the margins involved. Some of the points along the value chain will have comparatively lower revenue but higher margins due to higher barriers to entry (for example, batteries).

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