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How to Win Large Contracts in BRICS Nations: Follow the French
by Richard Basas | on February 17th, 2012
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Source-- How to Win Large Contracts in BRICS Nations: Follow the French | Foreign Policy Blogs
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Dassault Aviation is well known for being the firm that lead Frances military export push since its inception in the late 1940s. The formation of several state aviation companies tasked with rebuilding Frances air force and civil aviation infrastructure after the Second World War re- engaged Frances great tradition in aviation that began with some the first aircraft ever to fly. With France leaving NATO during the Cold War, French aviation was charged with the task of forming its own defence and equipment to stay politically independent, yet be effective enough to challenge the Soviets in the event the Cold War went hot. Dassault was the firm that opened French aviation to other countries when it initially sold its Ouragan and Mystere type fighters abroad, most notably to Israel. What put Dassault on the map and lead to a boom in sales was the success of the Israeli Dassault Mirage III fighters over Soviet MiG 21s during the 1967 Arab-Israeli war, showing that Frances small aviation industry could produce fighters that could compete with the worlds best aircraft. After Israeli pilots made the Mirage famous, Dassault sold the fighter to Australia and several other clients and firmly established Dassault and France as a key contributor to international military sales. With the EU in economic struggles and the BRICS becoming the source of a lot of investment between borders, France and Dassault has been able to capitalise on its position as one of the top technology producers in its field to challenge Boeing and their F/A-18E fighter series for contracts in two of the BRICS nations, India and Brazil. Much like the hard sell of the Mirage IIIs during the Cold War, Dassault has produced the Rafale fighter for export sale but have had little luck in selling it outside of France until recently.
Brazil was seeking to update its air force over the last decade but was weary of the French jet as it did not sell outside of France to any nation. With competition from Boeings F/A-18E and Saabs Gripen fighter, Dassault might have had to break even on the Rafale if it could not produce export sales outside of the Armee de LAir. Interest in the Rafale took hold in India and that lead President Rousseff of Brazil to send officials to India to analyse the deal , as well as express its interest in the Rafale over its main rivals. The firm decision on the fighter has yet to be set in stone, but it looks like the Rafale will arm India and Brazils air forces for the next few years.
.
.
Export sales by Dassault has often established the
firm over decades with the sale of Mirage IIIs,
Mirage 2000s and now the Rafales. Success of
Dassault fighters in the Falklands War over its
British rivals always made French technology one
of the most feared by any nation that had to
challenge it and has produced a great deal of
licensed French technology to be sold abroad,
especially to China. China currently does not have
Dassault fighters, but does produce variants of
the French Dauphin helicopter; one that has also
been purchased by the US navy, as well as one
of Chinas most numerous Anti-aircraft systems,
the HQ-7 Crotale. Competition with giants like
Boeing has been extremely difficult since
companies like Dassault and Airbus are based in
the EU and have to compete with American
companies, often for American contracts or
contracts from US allies. Aviation industry
contracts can make or break a firm, or provide it
with decades of support sales even after the
production line has stopped on a model of a
plane. Part of the decision to go with Dassault by
Brazilian officials was linked to an issue a few
years ago where Brazilian firm Embraer was
blocked from selling its Tucano aircraft to
Venezuela because it has US technology in its
avionics and the US was able to block the sale.
Airbus also has challenged American firms under
competition regulators when they lost a contract
to provide the US military with new refuelling
aircraft based on its commercial airliner models. It
was claimed by Airbus that there was not a fair
assessment of the contact between firms, as
political motivations to create American jobs
became more of a factor than the quality of the
product. While there have been several legal
battles in the industry over competition issues, it
makes a strong point that for Dassault and France
to win any defence contract in a BRICS nation is
extremely difficult. A detailed assessment needs
to be made on how to approach large
procurement contracts towards BRICS nations,
please see the article here for more details.
by Richard Basas | on February 17th, 2012
.
Source-- How to Win Large Contracts in BRICS Nations: Follow the French | Foreign Policy Blogs
++
.
.
Dassault Aviation is well known for being the firm that lead Frances military export push since its inception in the late 1940s. The formation of several state aviation companies tasked with rebuilding Frances air force and civil aviation infrastructure after the Second World War re- engaged Frances great tradition in aviation that began with some the first aircraft ever to fly. With France leaving NATO during the Cold War, French aviation was charged with the task of forming its own defence and equipment to stay politically independent, yet be effective enough to challenge the Soviets in the event the Cold War went hot. Dassault was the firm that opened French aviation to other countries when it initially sold its Ouragan and Mystere type fighters abroad, most notably to Israel. What put Dassault on the map and lead to a boom in sales was the success of the Israeli Dassault Mirage III fighters over Soviet MiG 21s during the 1967 Arab-Israeli war, showing that Frances small aviation industry could produce fighters that could compete with the worlds best aircraft. After Israeli pilots made the Mirage famous, Dassault sold the fighter to Australia and several other clients and firmly established Dassault and France as a key contributor to international military sales. With the EU in economic struggles and the BRICS becoming the source of a lot of investment between borders, France and Dassault has been able to capitalise on its position as one of the top technology producers in its field to challenge Boeing and their F/A-18E fighter series for contracts in two of the BRICS nations, India and Brazil. Much like the hard sell of the Mirage IIIs during the Cold War, Dassault has produced the Rafale fighter for export sale but have had little luck in selling it outside of France until recently.
Brazil was seeking to update its air force over the last decade but was weary of the French jet as it did not sell outside of France to any nation. With competition from Boeings F/A-18E and Saabs Gripen fighter, Dassault might have had to break even on the Rafale if it could not produce export sales outside of the Armee de LAir. Interest in the Rafale took hold in India and that lead President Rousseff of Brazil to send officials to India to analyse the deal , as well as express its interest in the Rafale over its main rivals. The firm decision on the fighter has yet to be set in stone, but it looks like the Rafale will arm India and Brazils air forces for the next few years.
.
.
Export sales by Dassault has often established the
firm over decades with the sale of Mirage IIIs,
Mirage 2000s and now the Rafales. Success of
Dassault fighters in the Falklands War over its
British rivals always made French technology one
of the most feared by any nation that had to
challenge it and has produced a great deal of
licensed French technology to be sold abroad,
especially to China. China currently does not have
Dassault fighters, but does produce variants of
the French Dauphin helicopter; one that has also
been purchased by the US navy, as well as one
of Chinas most numerous Anti-aircraft systems,
the HQ-7 Crotale. Competition with giants like
Boeing has been extremely difficult since
companies like Dassault and Airbus are based in
the EU and have to compete with American
companies, often for American contracts or
contracts from US allies. Aviation industry
contracts can make or break a firm, or provide it
with decades of support sales even after the
production line has stopped on a model of a
plane. Part of the decision to go with Dassault by
Brazilian officials was linked to an issue a few
years ago where Brazilian firm Embraer was
blocked from selling its Tucano aircraft to
Venezuela because it has US technology in its
avionics and the US was able to block the sale.
Airbus also has challenged American firms under
competition regulators when they lost a contract
to provide the US military with new refuelling
aircraft based on its commercial airliner models. It
was claimed by Airbus that there was not a fair
assessment of the contact between firms, as
political motivations to create American jobs
became more of a factor than the quality of the
product. While there have been several legal
battles in the industry over competition issues, it
makes a strong point that for Dassault and France
to win any defence contract in a BRICS nation is
extremely difficult. A detailed assessment needs
to be made on how to approach large
procurement contracts towards BRICS nations,
please see the article here for more details.
