Essay about Bombardier Case Study

1573 Words Dec 24th, 2012 7 Pages
1. Introduction: Problem Statement
The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders. It has now become unclear to investors what Bombardier’s future strategy will be within the aerospace industry.

2. External analysis
Technological: Due to the competitive nature of the industry, it is important to stay ahead of the pact in term of technology; continuously improving energy efficiency of the carriers.

Economic: The industry’s performance is highly tied in with the economy. A weak economy will mean weak sales.

Industry analysis: Porter’s five forces model
Bombardier Aerospace’s industry would be most clearly defined as the airline industry. *
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(See exhibit A)

Intangible Resources
Innovation Resources: Bombardier designed the model C110 that would compete with the Airbus and Boeing at a significantly lower operational costs and significant fuel consumption improvements.

Reputational Resources: Bombardier has been known to be the world leader in business and regional aircraft manufacturing.

* Capabilities:

Manufacturing* * Design and production skills yielding reliable products. * Product & design quality
Research & Development * Innovative technology

* Core competencies:
Innovative Technologies:
Valuable: Yes, it is valuable to Bombardier because it gives them an edge over the competition.
Rare: Yes, it’s not easy to innovate
Costly to Imitate: Yes, Millions in resources should be spent on innovation.
Non-substitutable: Yes, there are no strategic equivalents.

* Value chain analysis: what are the activities that should be improved? Should be outsourced?

Given the state of the financial analysis, it is evident that their resources are not being distributed properly and therefore their operation efficiencies need to be reviewed.

* What are the firm’s business-level and corporate-level strategies?

Business-Level:
Cost leadership, because the demand of aircrafts requires Bombardier to create more operationally efficient and fuel efficient aircrafts due to the rising level of demand of low cost carriers.

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