FLUX Space You are now working as a consultant in supply chain management and have been recently hired by Ray Helios, the CEO of FLUX Space. FLUX is an aerospace systems company, well known for creating metallic components for CubeSats, a new type of small-scale spacecraft. FLUX is considering entering a new business: the manufacture of solar sails. Ray has been closely following the Planetary Society’s attempts at using solar sails, and he thinks that FLUX can help. Ray also knows that there could be astronomical profit margins on the manufacture of solar sails in the near future. You have a phone call with Ray to discuss his ideas. After you hang up, you decide to do some initial research on solar sails and CubeSats, using easily available resources like Wikipedia and further sources for validation. (A list of references is provided at the end). Here is what you found. CubeSats Space travel has historically been both costly and difficult. A large fraction of the cost is the fuel required to get a spacecraft out of the Earth’s atmosphere. Fuel is also required once the craft is in space, to change its direction, speed or orientation. Fuel is heavy, and carrying fuel to be used in space requires extra fuel during the launch process. Because of this, any extra fuel that is included to be used while in space results in significant cost increases even at the time of the launch of the spacecraft. This cost pressure, along with other considerations, has moved aerospace innovation towards smaller, cheaper spacecraft. Companies like SpaceX now launch new small scale spacecraft used for educational, research and exploration purposes that are called CubeSats. CubeSats must fit in a cube 10 cm by 10 cm by 10 cm and weight less than 1.33 kg. One of the key difficulties for CubeSat creators is finding the right propulsion system to be used once the craft is in space. A few standard means of propulsion used by CubeSats in space travel are discussed below. Options for Propulsion in Space The propulsion means discussed below may be used in addition to, or as a substitute for, one another. They are used to adjust direction and speed in space as well as orient the spacecraft. They each have different strengths and weaknesses. Cold gas thrusters are a cheap and easy means to offer propulsion to a spacecraft. Releasing gas into space will quickly push the gas molecules into space and push the CubeSat in the opposite direction. Cold gas thrusters are relatively safe and require few moving parts. Unfortunately, CubeSat standards limit the amount of pressure and container size used. This limits cold gas thrusters to the amount of gas that they can hold within these limits. Chemical propulsion uses chemical reactions to generate high pressures and releases matter through a nozzle. This generates a good amount of propulsion and can be effective in CubeSat maneuvering. However, many types of chemical propulsion ingredients are not allowed due to CubeSat regulations and local launching regulations. There are some safe forms of chemical propellants currently under development, which look promising for the future. Similar to cold gas thrusters, chemical propulsion techniques can only offer limited propulsion based on the amount of chemicals that a CubeSat can hold. Electric propulsion uses electric systems to shoot out propellant at very high speeds. This allows the spacecraft to have a high specific impulse. Specific impulse is a measure of how efficiently the rockets are using a propellant. Electric propulsion offers a way to use propellant more efficiently. Nevertheless, electric propulsion needs further development before it can be used heavily in CubeSats. It requires complex electrical systems and batteries that store more energy than is currently allowed to be used in CubeSats. In essence, electric propulsion is an option for CubeSats in the near future, but not in the present. Current research and development is expected to make their use possible very soon. Solar Sails reflect solar radiation to create propulsion in space. Sometimes this is referred to as using radiation pressure. Solar sails are made of extremely thin mirrors that can be deployed in space. Since radiation pressure is relatively small, the solar sail must be quite large. This requires the sail to be deployed by the satellite once it is in space. This creates a huge potential for failure in an unforgiving environment. However, once properly deployed, solar sails are able to harness solar radiation indefinitely with no need for extra propellant. Harnessing radiation energy can take a long time but can accelerate objects to high speeds over long periods of time. Solar sails would give small satellites the ability to travel much farther than possible with the other propulsion methods listed above. Using solar sails, CubeSats could potentially visit other planets and beyond. In 2010, Japan launched the first interplanetary spacecraft to use a solar sail. Electromagnetic Drives (Em Drives) are proposed by some as an alternative for propulsion in space. An Em Drive uses microwaves contained in a conically tapered resonant cavity to – according to its proponents – offer propellant-free propulsion. This – in theory – allows for long trips to the edge of our solar system and beyond. If they work, Em Drives could provide similar benefits to solar sails, with even better control of the spacecraft and more potential for deep space exploration. The problem is that Em Drives are still largely theoretical, and rather controversial. Critics argue that Em Drives cannot work because they would violate Newton’s third law. Em Drives are not yet available for any space travel but may prove useful in the future. Notes from meeting with Ray You have a face to face meeting with Ray. Below are some notes from that meeting. Ray thinks that other companies may begin to manufacture solar sails if sails are proven useful. He knows of a few companies that have made solar sails in the past. However, no companies are manufacturing solar sails for CubeSats at this time. Ray thinks that other companies will likely follow FLUX into the CubeSat sail market if FLUX is successful. Ray feels that the space industry is relatively tame and competition will exist, but will not be intense. Ray is interested in manufacturing only one type of solar sails, using Mylar – Aluminized PET film. FLUX could manufacture this type of solar sail in-house. FLUX Space already purchases the same materials needed for Mylar from their current suppliers. Suppliers would have little control over FLUX. Many of FLUX Space’s suppliers have been poor at delivering products on time in the past. In general, FLUX Space has a relatively unstable supply. Ray’s customers would be the individuals, businesses, universities and governments that build CubeSats. These customers would have varying amounts of power over him. Ray does not expect them to be able to push him around a lot. Customer demand is not expected to be stable. FLUX Space’s manufacturing process for their Mylar solar sails would be state of the art. The new Mylar made at Flux Space’s facilities would be the best available. They would likely have issues getting Mylar manufactured at the beginning of the process. As the process continues, it should become increasingly stable. Ray expects to hold the largest share of the solar sail industry. Ray knows that CubeSats are quickly gaining popularity and expects the industry to begin growing faster in the coming years. Ray mentioned that he is a member of the Planetary Society, a popular organization. Ray wants to help them achieve their goals of using solar sails as a means of propulsion. Your Mission Ray has asked you to come up with some strategy implications for his business and the industry in general. Specifically, he wants you to: Use Porter’s 5 Forces to look at the solar sail industry. Identify where solar sails lie on the Growth-Share Matrix. Conduct a SWOT analysis on solar sails. Use Lee’s matrix to identify the proper supply chain strategy for FLUX Space.