Bombardier Case Study
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The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders.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. * Threat of new entrants: Low. Because of the capital and necessary expertise needed to enter the market, it is not easy for someone to enter. * Power to the suppliers: High. Because their subcontractors have mastered a very specific technologies and processes, it makes them very difficult to replace. * Power to the buyers: Medium. The airlines do not have a large selection of competitors to choose from. * Product substitutes: Low. Airlines do not have the luxury of switching products. * Intensity of rivalry: High. Has been increasingly intensified.
Medium-Low
* Competitor analysis: a) Who are our competitors? * Embraer * ATR
b) What are their capabilities?
Manufacturing: Their ability to satisfy the demands in terms of quality & efficiency
Assembly
A brief conclusion about the position of the firm against its competitors:
Embraer is a huge threat because of its increasing power over the industry.
* The development directions of the industry The industry is heading towards the mid-sized aircrafts with a capacity between 100-140 passengers and regional jets between 100-150 seats with turbo propulsion engines that required
The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders.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. * Threat of new entrants: Low. Because of the capital and necessary expertise needed to enter the market, it is not easy for someone to enter. * Power to the suppliers: High. Because their subcontractors have mastered a very specific technologies and processes, it makes them very difficult to replace. * Power to the buyers: Medium. The airlines do not have a large selection of competitors to choose from. * Product substitutes: Low. Airlines do not have the luxury of switching products. * Intensity of rivalry: High. Has been increasingly intensified.
Medium-Low
* Competitor analysis: a) Who are our competitors? * Embraer * ATR
b) What are their capabilities?
Manufacturing: Their ability to satisfy the demands in terms of quality & efficiency
Assembly
A brief conclusion about the position of the firm against its competitors:
Embraer is a huge threat because of its increasing power over the industry.
* The development directions of the industry The industry is heading towards the mid-sized aircrafts with a capacity between 100-140 passengers and regional jets between 100-150 seats with turbo propulsion engines that required