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Words: 1662
Pages: 7
Category: Business and Industry
Date Submitted: 12/09/2012 08:02 PM
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Bombardier Aerospace
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Strategy & Competition Case Study
Katia Martin, 9353941
Table of Contents
Table of Contents 2
1. Introduction 3
2. External Analysis 3
Environment Segments 3
Industry Analysis 3
Competitor Analysis 3
The Development Directions of the Industry 4
The Industry Success Factors 4
Conclusion 4
3. Internal Analysis 4
Resources 4
Capabilities 5
Core competencies 6
4. Alternatives 7
Corporate-Level Strategies 7
International Strategies 7
5. Recommendations 7
Appendix A 8
Appendix B 8
Appendix C 8
1. Introduction
The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders.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
Environment Segments
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 aircraft manufacturing 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: Low. The airlines do not have a large selection of competitors to choose from.
Product substitutes: Low. Airlines do not have the luxury of switching to different products because they only need airplanes it would be irrelevant for them to...