Beruflich Dokumente
Kultur Dokumente
[Institutional Affiliation(s)]
Author Note
Table of Contents
Introduction ......................................................................................................................... 3
Financial Success......................................................................................................................... 3
Strategic Analysis................................................................................................................ 7
VRIO/VRIN Analysis................................................................................................................ 11
Strategic Recommendations.............................................................................................. 13
References ......................................................................................................................... 15
STRATEGIC ANALYSIS 3
Introduction
business jets, commercial aircrafts and rail train sets. The company primarily follows an
exogenous strategy which prioritizes the evaluation and analysis of the external factors while
formulating and implementing its strategies. This particular report focuses on conducting an in-
depth strategic analysis of Bombardier and its strategies to gain a proper understanding about its
activity’s strategic competitiveness and the overall scenario of the organization. It further
provides recommendations based on which Bombardier would be able to maintain and enhance
Measures of Success
Financial Success
The financial success of Bombardier has been extensive over the years as it has been able
to gain a competitive advantage over its rivalling organisations. The company has been able to
gather a major chunk of the market share in the aviation and rail manufacturing industry which
has allowed it to achieve its financial objectives over the years and develop an extensive
financial reserve which the management has utilized to facilitate growth strategies and
expansions (BBC, 2015). The financial success of the company has been mostly facilitated due
to its ability to enhance its revenue through expansion and growth strategies incorporated with
methodologies such as large-scale expansion across varying global regions and through the
acquisition of new clientele. The company has been able to achieve more than 50% market share
in recent years in the global market of business jets. Hence, it can be evaluated that the financial
performance of the company has improved significantly in the last five years.
Non-Financial Success
Bombardier Plc has been able to garner non-financial success by focusing on aspects
such as sustainable development and prioritization of its human resource management strategies.
Data clearly depicts that the employee retention rate at Bombardier is fairly high which is clearly
development as it has become mandatory for aviation organizations to adapt to green supply
chain management practices due to the negative impact that the industry has had on the
Bombardier has transformed its business operations in the last decade by diversifying its
business to produce various revenue streams. The company has also been focusing on
internationalization to penetrate the foreign markets, as USA market is highly saturated and the
scope of growth is limited. The company’s mission has been to prioritize its customers and
provide value to them by utilizing its available resources towards achievement of customer
satisfaction. The customer base of Bombardier has been loyal and consists of numerous large-
scale clients. The company has been lauded over the years for its customer service, it has been
criticized in recent times for its traditional approach as the company has been slow to adapt to
modern business trends (CNN, 2019). The company has been suffering from limited scope for
Bombardier has established a strong supply chain management (SCM) system as it has
been able to build positive relationship with suppliers and partners. The management of the
STRATEGIC ANALYSIS 6
company is highly experienced and prioritizes the proper allocation of resources towards
achieving organizational objectives. The company has recently updated various aspects of its
SCM such as automated warehouse control initiatives, centralized ordering and distribution
system and electronic data change. One of the major reasons behind slowdown in the growth of
the company post 2010 is that its management has been late in understanding consumer
preferences and changes in market trends. In recent times, the largest competitive challenge for
Bombarider has been the emergence of discounted grocers which has caused a downfall in its
overall market share. The company which had always focused on providing the lowest prices to
its customers has failed to do so because the new trend of discounted grocers is selling products
at much cheaper prices in comparison to Bombardier stores, which has led in a shift of the
customer base and loss of confidence of the consumers. The niche competitors Airbus and
Boeing have grown significantly in the USA market giving intense competition to Bombardier
and the other three companies comprising the big four in the USA aviation product
manufacturing.
The needs and beliefs of the consumers have changed rapidly. The behavior of consumers
has been altered over the years, as individuals now seek value from the product/services they
purchase. According to changes in the consumer taste, preferences and behavior a number of
alterations have to be made in the aviation manufacturing supply chain management in order to
cater to the demands of the market. Aspects such as physical distribution and material
management have transformed into logistics management which is a major change in the supply
chain system for aviation product manufacturing companies (Fernie & Sparks, 2018).
Bombardier had been able to establish a stable and successful supply chain over the years.
However, drastic changes in the market trends and atmosphere has forced the company to make
STRATEGIC ANALYSIS 7
necessary changes in its supply chain due to which it has faced a number of challenges with
necessary changes in its SCM practices and it opted for mechanisms such as the automatic stock
ordering (ASO) as the system would primarily be responsible for replenishing the stocks
according to forecasted demands. However, Bombardier had to suffer from the bullwhip effect
due to a number of inefficiencies in its supply chain after it made several changes related to
automation.
The new system that had been implemented had certain technical flaws making it too
responsive to small demand changes, which significantly increased the implication effect in the
supply chain. The additional implications had an impact on the internal distribution network of
the company leading to confusions and ultimately loss of resources. The company had to
overcome the problems by examining the ASO system and other aspects in the supply chain to
achieve the optimum refreshment policy (Potter & Disney, 2010). Considering the current
situation and the operations for Bombardier it can be said that the company has faced problems
due to increasing competition and changing market trends. However, the problems do not end
there as there have been various internal issues as well. The company in the last two-three years
has improved its situation significantly and has been able to maintain itself as the market leader
Strategic Analysis
The adapted value chain clearly depicts the capabilities of the organization which has
been developed over the years through the integration of key value chain activities and ensure
STRATEGIC ANALYSIS 8
the utilization of the best practices related to the value chain to provide high-value to the existing
customers by ensuring that a holistic approach is adapted which focuses on catering to the
requirements of the customers as well as the organization itself. The adapted value chain of
Bombardier has proven to be highly important in its success and its evaluation through Porters
Value chain depicts its major strengths and weaknesses (Potter & Disney, 2010).
Primary Activities:
Inbound Logistics: Bombardier has been able to establish proper relationship with its
suppliers and has ensured that it is able to effectively optimize the utilization of its resources
which has allowed it achieve its goals and objectives. The proper allocation of resources towards
key activities has proven to be highly important in its success in recent years (CNN, 2019).
over the years. However, it is evident that there have been severe challenges in recent years to
internal conflicts which have proven to hinder the growth capabilities of the organization.
Despite challenges and large-scale obstacles Bombardier has been able to enhance its operational
efficacy to overcome challenges and ensure the stabilization in its operational activities through
challenges due to the drastic transformation in the modern business environment which has
facilitated rapid changes in its operational environment. However, it can be evaluated that over
the years, the company has been highly successful in establishing a proper supply chain which
has allowed it to effectively achieve its objectives and ensure the proper distribution of its
products through the various channels allowing the organization to maintain stability in its
operations. Furthermore, the extensive availability of resources ensures that Bombardier is able
STRATEGIC ANALYSIS 9
to establish the adequate infrastructure to facilitate the proper storage and utilization of available
goods and finished products which allows to gain a competitive advantage over its rivalling
organizations that have emerged as highly competitive in recent years such as Boeing and Airbus
Marketing and Sales: The marketing and sales activities of Bombardier have
transformed significantly in recent years with the company prioritizing long-term objectives and
ensuring it is able to retain its existing customers while emphasizing on gathering the attention of
potential customers. However, it can be evaluated that the company has been rather lagging
behind other organizations in adapting to digital marketing strategies which has impacted its
ability to acquire new customers. Despite that it can be evaluated that Bombardier strategies in
terms of customer retention has proven to be highly effective as it has been able to establish a
loyal customer which has been considered as one of the major strengths of the organization over
Service: Bombardier, being in the manufacturing industry has prioritized the utilization
of its resources towards establishing high-quality service as consumers within the sector are
highly skeptical about high-quality service. In order to do so, the company has focused on
Secondary Activities:
Procurement: The discussions above clearly depict that Bombardier has a highly
effective supply chain management and procurement strategy which allows it to acquire products
from key business partners and suppliers and ensures it distribution to the customers through
various distribution channels. The company prioritizes procurement of high-quality raw materials
and finished products from its business partners through a strategic method which ensures that
high-quality products are provided to its clientele (Potter & Disney, 2010).
STRATEGIC ANALYSIS 10
Human Resource Management: The proper utilization of the human capital has been
considered as one of the major factors promoting organizational growth in the modern business
environment. In that context, it can be evaluated that Bombardier human resource management
has been mostly successful as the company has a high employee retention rate as it offers
extensive growth opportunities to its employees (Potter & Disney, 2010). However, there have
been numerous issues and complaints that the organization has faced over the years depicting
that there is a clear scope of improvement in its HRM activities which would allow the
organization to further prioritize the proper usage of the available human capital.
organization has been focusing on technological development within all the facets of the
organization as it has aimed to cope-up with the rapidly changing modern business environment.
Furthermore, it can be evaluated that the organization has been extensively improving its digital
marketing strategies and its online venture to benefit from the growth opportunities in the online
aviation manufacturing sector. Furthermore, it can also be evaluated that the incorporation of
technological advancements within its framework has allowed the company to enhance the
efficacy of its operations within the brick and mortar stores of Bombardier as well. The
utilization of technologies such as machine learning and artificial intelligence has allowed
through the prediction of the probable changes in consumer trends, behaviors and preferences
globally has a wide array of resources at its disposal which has allowed it to establish a proper
infrastructure for its key functional departments. The well-established infrastructure allows the
STRATEGIC ANALYSIS 11
workforce of the organization to function effectively towards achieving its objectives and goals
in the long-term. Apart from that, it can also be evaluated that the growing advent of practices
that the infrastructural capabilities of Bombardier is highly well-established which has allowed
the organization to strengthen its key functional departments such as marketing, operations,
finances and human resources which is pivotal in gaining a competitive advantage within the
modern business environment which can be termed as highly challenging (CNN, 2019).
VRIO/VRIN Analysis
The VRIO analysis allows the business to adopt a systematic approach towards
accurate understanding of the internal capabilities of the organization to grow and achieve its
objectives.
Valuable: One of the most valuable resources for Bombardier is the experience of its
management and workforce which allows it to overcome organizational obstacles that may have
a negative impact on the functionality of the operations (Haddock-Millar and Rigby, 2015;
Bridoux and Stoelhorst, 2014). It is evident that businesses, over the years, have emerged as
highly competitive, but the vast exploit of resources that Bombardier possesses has allowed it to
maintain its competitive advantage over its rival organizations which concludes that the current
resources of Bombardier are valuable and contribute towards its growth (Vértesy, 2017; Haslam
Rare: As it has been discussed extensively in the sections above, Bombardier has the
adequate expertise which has allowed it to overcome challenges posed by the external
STRATEGIC ANALYSIS 12
environment such as the uncertainty caused by Brexit and internal threats such as the accounting
scandal in 2015 which resulted in the highest ever reported losses for the company. Apart from
that, the improvement in technological portfolio and IT integration have proven to be major
strengths for Bombardier and has reflected the resources that it possesses are highly rare and
difficult for any other company within the sector to achieve (Brannen, Moore and Mughan,
2013).
Imitable: The resources and the human capital possessed by Bombardier have been
amassed over an extended period of time primarily due to the fact that the history of the
company is dated back to more than a century, which reflects that it has been able to adapt and
overcome numerous challenges such as recessions and other external, internal environmental
challenges. In that context, it is important to evaluate that it would be highly difficult to adapt to
Organization: The organizational aspect depicts that Bombardier’ capabilities and core
competencies are extensively developed which represents the fact that despite the numerous
environmental and internal challenges that have been discussed in the sections above, it would
have the capability to prioritize the utilization of its resources to overcome existing challenges
One of the major strengths that have led to Bombardier strategic success is its ability to
maintain the approach which puts customers first. Bombardier has always strategized and
formulated its plans to make customer its priority. Offering high-quality customer service even in
international markets has proven to facilitate growth for Bombardier not only the USA but in
countries such as the UK. Bombardier has established strong goodwill over the years due to good
STRATEGIC ANALYSIS 13
service and ethical mode of operations. Bombardier also has a wide range of assets which
supports it during times of financial turmoil. Under the current circumstances the strategic focus
of Bombardier Plc has been to expand its business operations in order to sustain its market
of profitability by focusing on strategies such as lean management. Apart from that the
management has been determined towards achieving sustainable development objectives in order
to comply with sustainability standards and green supply chain management capabilities laid
The leadership capabilities of Bombardier have been one of the major strengths of the
organisation. In recent years, the CEO has practiced situational leadership which has aimed to
prioritize its strengths by focusing on the holistic development of the company and its
employees, key stakeholders involved such as the customers, suppliers, business partners etc.
Strategic Recommendations
The above discussions have made it clear that Bombardier possesses the adequate
resources and core competencies to emerge as the market leader in the business jet and
commercial aircraft manufacturing segment. Apart from that, its management has adequate
expertise to overcome the existing challenges and obstacles as it has done over the last few years.
However, the current external environment situation within the USA and Europe is highly
challenging and furthermore, the internal issues within the company are a major factor as it has
prohibited it from achieving its organizational objectives in the past, as the organization has
faced severe losses in the last few years which lead to the loss of stakeholder’s confidence
specifically among the employees and investors. Under the current circumstances, it would be
critically important for the company to ensure that it adopts a systematic and strategic approach
STRATEGIC ANALYSIS 14
towards overcoming the internal challenges which would ensure that it is able to effectively
formulate strategies that focus on fulfilling the objectives of the key stakeholders, as it is evident
that the stakeholder theory results in a situation where the company is able to achieve extensive
growth.
Bombardier must also aim to focus on adequately allocating its resources and core
competencies towards expansion strategies which would ensure that it is able to benefit from
them. Considering the limited scope for growth in the USA and European market which is highly
able to take advantage of the extensive opportunities in the developing countries in Asia and
Africa. However, evaluating the current international expansion failures of Bombardier, it would
be necessary for the company to focus on overcoming the challenges such as lack of market
penetration and ensuring it is able to venture effectively with local organizations which would
allow it to understand the customer preferences and demands in that particular country Lastly, it
would be extremely important for Bombardier to ensure that it is able to comply with the ethical
and regulatory guidelines of the respective country within which it operates, as the company has
faced issues due to the aforementioned factors in the last decade in countries such as the USA.
Hence, it can be concluded that the adaptation of a strategic approach which aims to mitigate the
References
Brannen, M., Moore, F. and Mughan, T. (2013). Strategic ethnography and reinvigorating
Bridoux, F. and Stoelhorst, J.W. (2014). Microfoundations for stakeholder theory: Managing
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Fernie, J., & Sparks, L. (Eds.). (2018). Logistics and retail management: emerging issues and
new challenges in the retail supply chain. London: Kogan page publishers.
Haddock-Millar, J. and Rigby, C. (2015). Business Strategy and the Environment: Bombardier
Declining Financial Performance and Underlying Issues. Review of Business & Finance
Haslam, C., Butlin, J., Andersson, T., Malamatenios, J. and Lehman, G. (2014). Accounting for
carbon and reframing disclosure: A business model approach. Accounting Forum, 38,
200-211.
Marsh, G. (2011). Bombardier throws down the gauntlet with CSeries airliner. Reinforced
Potter, A., & Disney, S. M. (2010). Removing bullwhip from the Bombarider supply chain.
https://www.statista.com/statistics/263819/sales-share-of-bombardier-aerospace-in-the-
us-since-2006/
STRATEGIC ANALYSIS 16
leadership changes in the regional jet industry. Research Policy, 46(2), 388-403.
Yoruk, D.E. and Radosevic, S. (2010). International Expansion and Buyer Driven Commodity