Bombardier Report Essay

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Bombardier Report

Analysis of Bombardier:

     Bombardier took on its present form in 1976 when MLW-Worthington, a manufacturer of locomotives, acquired Bombardier Ltd., a manufacturer of snow tractors and snowmobiles. The company was renamed Bombardier Inc. in 1978. The company has been active ever since in the acquisitions of various aerospace and transportation companies around the world.

Nature of the Business

     Bombardier conducts business in five main areas: transportation equipment, aerospace, defense, motorized consumer products, and in financial and real estate services. The total revenues increased by 20% from $5.9 billion to
$7.1 billion over the last year.
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The
Canadair 50 seat regional jets are continuing to be turned out at a rate of 60 per year. Overall the Aerospace industry has strong growth potential, provided that Bombardier sticks to its successful niche marketing strategy. Bombardier is competing with some of the biggest companies in the world. Boeing, McDonnell
Douglas, Lockheed Martin, and Raytheon are all counted as the opposition.

Transportation Equipment

     This industry is responsible for 22% of sales and 22% of profits for
1995. The nature of this group is cyclical. Bombardier manufactures subway cars, high speed trains, passenger cars, and a variety of other equipment, which is primarily sold in the North American and European markets. Bombardier has made many acquisitions in this industry that are usually acquired at a loss.
These acquisitions along with the huge loss in the Eurotunnel contract has made it difficult for Bombardier to show it's real profitability in this industry.
Revenues have increased by 20% since 1994. Bombardier has 28% and 12% of the
North American and European markets respectfully. The outlook for expansion in the North American market is encouraging with the contract with Am-Trac to supply high-speed trains and equipment for use in the United States. Recent developments in Mexico has led to an increase in demand for railway cars in that
country.