Bombardier Aerospace: The Cseries Dilemma Harvard Case Solution & Analysis

Bombardier Aerospace: The Cseries Dilemma Case Study Solution 

2 bargaining power of suppliers

The bargaining power of suppliers is low in the case of bombardier because the standards that companies require are very specific and essential and suppliers have to comply with those standard requirements. As for suppliers to be consistent with the quality of the pieces of equipment. According to the data available in the company had suppliers who supply 55000 components of the airline.

3 Bargaining power of buyers

The bargaining power of buyers is relatively low for bombardier aerospace because the market does not have many options for buyers and their buying decision is limited to few companies in the industry. When customers in the industry have low powers then it is considered good for the companies

4 Threat of substitutes

Threats of substitutes are low for bombardier aerospace because there is no comparison of traveling through the airline or any other mode of travel. No other traveling mode can compensate for the travel experience through the airline. The customers of the airline industry are less likely to change the traveling mode. Substitutes in this industry can be low-quality services and no customer will prefer to switch to a low-quality system.

5 Rivalry

Rivalry is been part of this industry for years. The competitors for the airline industry have been increasing throughout time.The changing technology advancements and customer demands have created huge competition in the industry. The industry has enough potential to catch the attention of new investors. Due to high barriers in the industry, the rivalry in the industry is still high. The rivals are Boeing, Airbus, Bombardier, and Embraer.

SWOT Analysis

Strengths

Bombardier aerospace is number 3in the industry and has enough resources to convert those resources to fulfill the Cseries project. Bombardier has a competitive advantage due to the resource company has. Further, the strength is discussed below:

• The company hasa first-mover advantage, a first-mover can reap the highest revenues.
• Bombardier aerospace hasa diversified product portfolio
• The company has healthy financial records and risk-free business
• The company has a clear vision of future growth and revenues and earnings.
• In the case of Cseries company will achieve the diversification
• The company can get the intellectual property right by moving first in the market

Weakness

• Bombardier aerospace has time-consuming production and delivery system. We can get the sight from the Cseries. The project was planned before but management was still waiting and was unable to defend.
• Bombardier aerospace has faced the allegation of government subsidies.
• The company has lack of talent to manage the new project
• The Project is inefficient at managing the inventory

Opportunities

• The company has an opportunity to explore the developing nation and its market for future growth.
• The customer demand and changing trends have also opened new opportunities for bombardier aerospace to explore.
• The company can also diversify its product market by exploring the high-speed demand for efficient trains
• The option of fuel-efficient aircraft was also an option for the bombardier to explore
• The company can explore the new market and increase the market size and fulfill customer demands.....................
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