The Cold War had been good to Rocketdyne, Boeing’s propulsion and power division. Starting in 1958, when the United States launched its first orbiting satellite, all the way through the 1980s, Rocketdyne was the dominant producer of liquid-fuel rocket engines. But after the breakup of the Soviet Union, makers of communications and weather satellites started favoring the cheaper engines coming out of a newly independent Russia.

A version of this article appeared in the May 2004 issue of Harvard Business Review.