Case Study Bombardier
CASE STUDY Bombardier Aerospace: The CSeries Dilemma
Propaedeutics in Strategy 70-450-12A
FOROUGH ENSANDOUST MARTICULE 11142559
1. Current Performance As of September 30, 2012, the total number of 138 units of CSeries100 and CSeries300 commercial jets are ordered, while it now expects the first delayed delivery before the end of next June, a delay that had been anticipated due to high performance milestones set by company .According to Pierre Beaudoin CEO ,company requires more time to meet certain CSeries program targets but others had been met and the company and its suppliers have "now fully harmonized all commitments to the program's schedule."
2. Current Strategy Since July 2004, Bombardier is working on new family of aircrafts called CSeries, which is capable of carrying between 100 and 135 passengers depending on model. The focused market is airlines that owned old generations of aircraft within the same capacity needed to be replaced. The CSeries family will be specifically optimized to operate on regional routes by meeting the capacity of regional carriers and specifically they are expected to consume less energy than Airbus and Boeing while in terms of operating costs CSeries will operate significantly less expensive than the existing crafts.
Macro Environment Analysis
PESTEL ANALYSIS
Political-Legal High financial support of Canada, UK and Quebec Governments: -Governments support may cause legal battles with foreign governments and competitors. If Bombardier’s side loses, it has negative impact on financial situation and on potential customers Government Safety Regulation: -This can leads to higher costs for Bombardier, if Government tightens the rules regarding safety. They might reconsider some designs in higher costs Economic Recession: -It leads to fewer passengers and also financial instability of airlines ,so less request for new aircrafts or Government may reduce the financial supports Currency rates: - The buying power of
Propaedeutics in Strategy 70-450-12A
FOROUGH ENSANDOUST MARTICULE 11142559
1. Current Performance As of September 30, 2012, the total number of 138 units of CSeries100 and CSeries300 commercial jets are ordered, while it now expects the first delayed delivery before the end of next June, a delay that had been anticipated due to high performance milestones set by company .According to Pierre Beaudoin CEO ,company requires more time to meet certain CSeries program targets but others had been met and the company and its suppliers have "now fully harmonized all commitments to the program's schedule."
2. Current Strategy Since July 2004, Bombardier is working on new family of aircrafts called CSeries, which is capable of carrying between 100 and 135 passengers depending on model. The focused market is airlines that owned old generations of aircraft within the same capacity needed to be replaced. The CSeries family will be specifically optimized to operate on regional routes by meeting the capacity of regional carriers and specifically they are expected to consume less energy than Airbus and Boeing while in terms of operating costs CSeries will operate significantly less expensive than the existing crafts.
Macro Environment Analysis
PESTEL ANALYSIS
Political-Legal High financial support of Canada, UK and Quebec Governments: -Governments support may cause legal battles with foreign governments and competitors. If Bombardier’s side loses, it has negative impact on financial situation and on potential customers Government Safety Regulation: -This can leads to higher costs for Bombardier, if Government tightens the rules regarding safety. They might reconsider some designs in higher costs Economic Recession: -It leads to fewer passengers and also financial instability of airlines ,so less request for new aircrafts or Government may reduce the financial supports Currency rates: - The buying power of