Bombardier Aerospace: The Cseries Dilemma Case Solution
Introduction
Bombardier was founded by Joseph-Armand Bombardier in 1942. The headquarter is located in Montreal Canada. The company manufactures planes, trains, and other mobility modes. Bombardier has almost 73 production sites in twenty-nine countries. Bombardier aerospace is an aircraft manufacturer and also counted as number three in the local aircraft industry. It has a seating capacity of 150 passengers. Bombardier aerospace is associated with product developments and regional jet business. Along with that company also offer spare parts and also manufacturing planes that are used in firefighting and last but not least it also provides training and maintenance. Currently,the company has 138 regional airplanes and 197 business airplanes. This case discusses the dilemma that the company was facing.
In 2004 the company decided to come up with new airplane series and it was named as c series. But management was unable to decide and finalize the decision of product launch. Till 2007 the company management was unable to decide the final selection of the CSeries. The company was unable to defend the questions asked by investors and stakeholders’ capabilities. These things lead the company to delay the launch of this new series. The management of the company was passing different statements and was making a suspicious decision. Actually, after the first announcement of the Cseries launch, it was delayed three years. And still, the decision was pending. During this period company invested in the research and development of the company. Bombardier was faced with the dilemma of launch or not launch the CSeries. This case discusses the dilemma and we are here to explore the internal and external environment of the company to recommend and solve this dilemma. The main idea of this case is to discuss the external and internal environmental issues and how feasible it is for the bombardier to launch the new Cseries. How much the external environment is supportive and how many strengths we have to complete the launch of these new CSeries.
Problem Statement
Bombardier Aerospace delayed its Cseries project and in return has nothing to defend in front of stakeholders and board of directors. This delay depicted that company has no any strategic planning, lack implementation planning, and also it reduced the credibility of the management.
Analysis
In this analysis of the case, we will first move towards industry analysis, to explore the external markets because the external environment has a significant impact on the company performance. This industry analysis will make us able to understand the sustainability of the project in the economy. Bombardier operates in the logistics and transportation industry. The analysis is defined below:
Porters five forces model
1 New Entrance
The threat of new entrants in the industry was moderate in the case of Bombardier Aerospace because the new entrants need high investment-sand the cost of operating in the industry also not bearable for any new company.and the competitors will not allow another new company to come into the industry. i.e. Chinese companies and Russian companies. The given data in the case clearly stated that the expected cost of doing business in 2007 was 100 million and 2 billion company operating costs. Another aspect was that new companies will take time to reach a point where the competitors are currently operating and achieved economies of scale…………………….
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