Blockchain-Embedded Strategic Options for Satellite Operators: Sell, SataaS, or Dual?

Abstract

With the rise of satellite-as-a-service subscriptions as technology improves, our paper examines how satellite operators (SOs) can choose between traditional channels for selling satellites, satellite-as-a-service (SataaS), and dual-channel strategies. In the space supply chain, commercial satellites display several distinct characteristics that differentiate them from other physical commodities in traditional supply chains, most notably their exposure to significant launch risks. In addition, SataaS suffers from the risk of secure data transmission. However, the emergence of novel technologies such as blockchain technology (BCT) could help to mitigate such risks. Therefore, our study analyzes the optimal strategy among the sell, SataaS, and dual-channel approaches for SOs by considering the above distinctive characteristics in the case without blockchain and the case with blockchain. Our paper reveals the existence of a dual-channel strategy that generates the highest profit for the SO and yields the highest consumer utility when launch success is high and when SataaS fixed costs are low. When the launch success rate is very high, the dual-channel strategy transforms into a pure sell strategy. After the adoption of BCT, when the cost of BCT is low, the SO’s profit is enhanced in all three sales channels compared to the case without blockchain. Notably, in SataaS as well as in the dual-channel approach, the adoption of BCT always improves consumer utility compared to the case without blockchain. However, in the sell channel, the consumer benefits depend on the relatively low cost of blockchain customization.