BOMBARDIER’S NEW CSERIES LINE OF JETS

AUTHOR: DIEGO ARTURO CHAVEZ HONORES

FROM: TRUJILLO, PERU

DATE: MARCH 25TH, 2019

STRATEGIC FORMULATION

Firstly, there are three drivers for Bombardier to compete in the airline manufacturing
industry: comfort, reliability and efficiency. These aspects are pretty important as there are
very few competitors who take part in the sector, the demands of customers are extremely
high and the airplanes produced will be used for massive transportation services involving
huge amount of lives.

Bombardier as a competitor in the area, develops new CSeries airplanes to complement its
product portfolio. The present context for the CSeries jets is not the most favorable because
the current oil prices are low and there is a reduced interest in renewing the old airplanes
because the customer do not hope a marked difference in savings for oil consumption, as
well as most airline companies prefer to wait for positioning of the CSeries models.

However, in the middle of this juncture, Bombardier accomplished the contract with Swissair,
a division of the famous Germany Lufthansa, which is a door to expand the presence of
Bombardier airplanes with big airlines. With the recent contract and the mentioned global
circumstances, it will be a great opportunity to Bombardier to maintain the production of the
airplanes and search for more customers because they have the endorsement of a great
airline and are offering a more efficient and eco-friendlier product in its category. These
characteristics mean the competitive advantage to differentiate Bombardier jets from those
of Airbus and Boeing.

In order to create and maintain the value of the company, it should be clear that the
differentiation of the airplanes is the main strength of Bombardier to continue on the path of
improvement. This advantage gives them the opportunity to attract more clients from large
capacity air travels and establish broader relationships with them. Nevertheless, there are
some threats in the immediately future because the oil prices in the international market are
going down and the customer are looking for better returns, so the high costs associated with
new airplanes should be managed carefully because it could become a critical weakness.

If sells increase and the CSeries jets are successful, it will be great for the company. Whether
the opposite case occurred, a partnership could be evaluated with another company that
produces or gives support to this kind of airplanes in order to look for more sales options and
adjustment to the client’s requirements. In any case, the main goal of the actions taken by
Bombardier should be directed to increase profits and establish the new CSeries models as
one of the tools to reinforce the presence of the company in markets such as Asia, Europe
and Latin America.
STRATEGIC FORMULATION

The new CSeries models represents an opportunity for Bombardier as the current context of
the sector is it not the most favorable. To face this situation, the company must enhance its
performance in these three areas of development: Expand its Communication tools, renew
its Culture to involve more employees and define the Structure that will allow them to grew
adequately.

One of the issues in Bombardier is the openness in work communications. In this aspect, all
workers should know what are their functions, responsibilities and benefits from working in
the company, so they can meet the expectations. It begins with an honest sharing of results
between the management of the company and distributes to every area involved. The
workers must support their results with data. This is a big goal, so the company will train its
key employees in presentation techniques in order to get technical presentations with real
data in all the meetings by 2020.

As Bombardier has a competitive advantage based on differentiation, it is almost mandatory

to impulse a culture where most employees have the power to propose new ideas and modify
the status quo, with sensible limitations based due to the aircraft manufacturing industry has
several responsibilities related to human life. With this in mind, an intensive and permanent
project development area will be created in every division of the company to collect the
improvements proposed by the employees and direct them towards profitable and plausible
proposals. The objective is to develop ten improvement projects annually to extend the
differentiation capacity of Bombardier.

All the previous work should be done based on a frame where the divisional structure allows
to satisfy the client requirements. The company will diversify its positions in countries based
on Asia, Europe and Latin America to compete with the two big companies in the sector.
Then, the new divisions will focus on customer preferences and advocate all the efforts to
reach them with the new culture and communication approaches. The divisions will increase
the company profits by 15% in five years as maximum.