Bombardier Case Study

Decent Essays

Why did Bombardier deliberately tap into the three member countries in the North American Free Trade Agreement (NAFTA), instead of concentrating its work on one country? A company’s decision in the selection of the right location, is a key ingredient in a business's success. If a company selects the wrong location, it may have inadequate access to customers, workers, transportation, materials, and so on. Therefore, location often plays a huge role in a company's bottom line and ultimately its success. Location strategy is a critical factor in the success or failure of a company. A good plan for acquiring the optimal location by identifying needs and objectives, searching for, and acquiring the best suitable location is a successful location strategy. Usually, a firm will set its goals on maximizing opportunity while minimizing its costs and risks. (Heil, K., 2006) Trade zones, like NAFTA, allow for companies to consider the benefits offered by the free-trade zones provided under this agreement, which are closed facilities monitored by customs services where goods can be brought without the usual customs requirements. Bombardier, a Canadian base company and one of the World’s leading manufacturer of both planes and trains, acquired Learjet, a Wichita, Kansas based manufacturer of luxury business jets. As NAFTA came to existence in 1994, Bombardier explored the agreement's potential in respect to its Learjet business operations. Considering the highly competitive market for

Get Access