Bombardier Case free essay sample

The Problem Bombardier is the global leader in business and regional aircraft manufacturing and in recent years has been improving their performance. Their strategic objective has always been to be global leaders in both their aerospace and transportation divisions. However, there have been frequent leadership changes since the diversification era ended in 1999, and many analysts and investors have been questioning what their long-term strategy in the aerospace industry is, especially since the postponement of the CSeries launch. Their regional jet product line is a concern with the aging technologies of the CRJ and Q-Series models. And the threat of the Chinese, Japanese and Russians entering the market is imminent. It remains clear that Bombardier now faces the challenge of having to carefully assess its strategic direction for the future in order to hold its competitive advantage in regional jet market. External Analysis Bombardier is part of the Aerospace and transportation industries, but the focal industry in question is the regional aircraft industry. We will write a custom essay sample on Bombardier Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In order to conduct an external analysis, Porter’s 5 Forces Model will be used. Threat of New Entrants: is moderate. If the Chinese and Russian projects don’t follow through (since they would be the direct competitors to the CRJ1000 and CSeries), it would be extremely difficult for other competitors to enter the market because the costs associated are relatively high. For example, the initial cost of Bombardier’s CSeries project reached $100 million as of April 2007, and the estimated cost of the entire project is $2 billion (All figures are presented in USD). Also, there are very powerful firms established in the industry and for a new firm to enter they would have to compete with firms already on the lower end of the learning curve (See Exhibit 1). Bargaining Power of Suppliers: is moderate. There is no threat of suppliers lowering quality because of the high standards set by industry regulators. However, there is always risk of price increases. There aren’t a vast number of suppliers in the industry, and their parts are extremely important in the manufacturing process. Furthermore, Bombardier has integrated technologies and components with their suppliers that are specific to their requirements. As a result, the switching costs would be extremely high, and the availability of substitutes is almost nil. Bargaining Power of Buyers: is moderate to high. Passengers’ preferences changed over time from comfort to low price. Since the passengers are the end users in this industry, airline companies must meet their needs. Therefore, passenger preference is the deciding factor when choosing which aircraft to purchase. The fact that there are several competing manufacturers to choose from adds to this power. Also, the switching costs are low since airline companies deal with many manufacturers regardless of what they have previously purchased. What is important for buyers is to acquire aircraft that will meet their customers’ needs and leave them with low operating costs. Threat of Substitute Products: is low. There are alternatives to planes, such as cars, trains, and buses. However, there is no replacement when it comes to traveling large distances in short periods of time. Rivalry Among Existing Competitors: is moderate to high. Bombardier’s main competitor in this industry is Embraer, however there are several countries (China, Russia) attempting to enter the market. The intense rivalry already exists between Bombardier and Embraer since they’ve both been introducing many new products over the past decade. Also, the low profit margins are a result of this intense competition. Furthermore, governments play an important role because they support their national manufacturers to protect them from foreign competition. Strategic Implications of Analysis Results: Currently, Bombardier is in a favorable position. They are the leaders for business and regional jets. Though, the aging technology of the CRJ and Q series models is a problem that needs to be addressed. Fuel-efficiency is a big issue with the rising price of oil and in order to maintain their competitive advantage, they need to develop new products that will make them the most energy-efficient and have the lowest operating costs. As for the future of the regional jet market, the demand is moving towards aircrafts with 100 to 150 seats and the global market is shifting toward BRIC countries. In this emerging market, Bombardier must continuously be innovative to stay ahead of the potential competition coming from China and Russia. Internal Analysis The VRIN model has been selected to evaluate the potential core competencies (resources, capabilities) Bombardier may have, resulting in a competitive advantage (see Exhibit 2). *Potential Core Competencies 1. Relationships with manufacturers of major components, suppliers of important parts, and repair and maintenance companies, resulting in strategic partnerships. 2. Diversified portfolio of products in the Business Jets Segment and Regional Jets Segment. 27% and 51% market share respectfully (See Exhibit 3). 3. CRJ’s reputation for being energy-efficient and the most popular regional aircraft series in history. 4. Unique design and engineering, resulting in aesthetically appealing aircraft with market leading fuel-efficiency and low operating costs. 5. Productivity and operational effectiveness. For 2006, Bombardier Aerospace’s gross profit per employee was $24,444 compared to direct competitor Embraer’s gross profit per employee which was $40,142 (See Exhibit 4). Strategic Implication of Analysis Results: It is clear that their diversified portfolio, the CRJ reputation, and unique design and engineering of their aircrafts are the factors that give Bombardier a competitive advantage over their competitors. This demonstrates how Bombardier is unique and how they differentiate themselves from their competition. With the operational costs being the main factor for airline profitability, Bombardier holds a solid position in the marketplace and it is these competencies that will allow them to thrive. However, the relationship with their manufacturers and suppliers, and their productivity and operational effectiveness result in a competitive disadvantage and below average returns. If they are to sustain their competitive advantage, they must reduce their cost of revenues which is clearly hurting their profits (See Exhibit 4). Moving Forward Alternative 1 Proceed with the status quo. That would mean dropping the CSeries project and ontinuing to improve the CRJ model to eventually have capacity within 100-150 seats. Bombardier would be able to compete with its core competencies of a diversified portfolio, great reputation of the CRJ, and their unique design and engineering allowing them to be leaders in energy-efficiency. Pros: * Save time and money by not pursuing the CSeries project ($2 billion ). * Allow them to invest their resources in improving the CRJ model. * The CRJ is already the most popular regional jet model in history and offering an aircraft of 100-150 seats would address the future market demands. Cons: Lost time and money already invested in the CSeries ($100 million). * Doesn’t address the fundamental issue of the aging technologies in the CRJ and Q-Series models. * Confusion of the long-term strategy of the firm. * Not much innovation, not adapting to change. Alternative 2 Bombardier can further differentiate themselves by proceeding with the CSeries project to address several issues of the future. The CRJ1000 provides an immediate solution for higher capacity and comfort at lower operating costs. The CSeries would be specifically targeted for the 100-150 seats market of regional aircrafts. Pros: Address the fundamental issue of the aging technologies in the CRJ and Q-Series models. * Set the long-term strategy and goals of the firm, and provide stability for a firm that analysts believe to have a blurred vision and strategic uncertainty. * Fill a gap in the marketplace by replacing older generation planes of the same capacity and provide more comfort and efficiency. * Meet the future needs of the market for regional aircraft which is moving towards aircraft of 100- 150 seats (See Exhibit 5). Cons: * Significant investment ($2 billion) needed. * Uncertainty of market response to brand new line of regional jets. Unforeseen technological issues may arise (i. e. quality and after sale service required) * Will it provide good profit margins and satisfy shareholders and analysts expectations? Final Recommendation (Best Alternative) The future of the aerospace industry is changing. Geographically because of the emerging markets in the BRIC countries, representing 35% of global demand in 2005, and by category of aircraft, because of the increase in short and mid-range routes of regional airlines. Furthermore, airline companies’ profits are directly tied with operating costs making cost-effectiveness extremely important. The European Union put in place the Emissions Trading Scheme beginning in 2011, which will further increase the demand for fuel-efficient aircrafts. With both alternatives presented above, Bombardier would hold an advantage over its competitors, more so in alternative 2 with the launch of the CSeries (which would be the leader in fuel-efficiency). In order to select the best alternative and solution to the problem, a number of other factors must be analyzed. Firstly, the regional jet product line is a main concern since the technologies of the CRJ and Q-Series models are aging. With the demand for regional aircraft shifting towards jets with a capacity of 100 to 150 seats, Bombardier would need to provide an aircraft within that range. Alternative 1 could work if they develop a CRJ model that would meet the demand for that market, but it would not address the aging technologies. Alternative 2 would be best to solve this problem because developing a new generation of aircrafts with new technologies that are specifically targeted towards that market will allow Bombardier to maintain its competitive advantage and global leadership. Secondly, the aircraft industry is a cyclical industry. Therefore, planes within the range of 100 to 150 seats that were purchased many years ago will need to be replaced. Since the new trend is energy-efficiency, the airline companies will be looking meet this need. Currently, there are no aircrafts that would specifically meet the capacity needs of regional carriers. With the Chinese and Russians attempting to enter this market, the window of opportunity is getting smaller. Alternative 1 would not provide a direct solution to this problem because the aging technology of the CRJ (if Bombardier were to develop a model to meet the capacity) would not be able to compete with the new technologies of the Chinese and Russian models. Alternative 2 on the other hand, would provide the best solution to this problem because it would specifically meet the capacity and energy-efficiency needs of the market. In conclusion, alternative 2 is far more attractive than alternative 1 for all the reasons discussed. Additionally, it would provide Bombardier with a long-term strategy in the aerospace industry and allow them to maintain their competitive advantage and continue to fulfill their strategic objective, which has always been to be a global leader. Bibliography Source: Taleb, A. , Hebert, L. (2011). Bombardier Aerospace: The CSeries Dilemma. London Ontario: Ivey Publishing. Exhibit 1 LEARNING CURVE Source : http://hsimonis. wordpress. com/2010/07/26/building-fighter-aircraft/ Exhibit 2 VRIN MODEL *Potential Core Competencies| Valuable| Rare| Inimitable| Non-Substitutable| 1| Yes| No| No| No| 2| Yes| Yes| Yes| Yes| 3| Yes| Yes| Yes| Yes| | Yes| Yes| Yes| No| 5| Yes| No| No| No| Exhibit 3 BUSINESS AND REGIONAL JETS SEGMENT MARKET SHARE FOR 2006 Source: Taleb, A. , Hebert, L. (2011). Bombardier Aerospace: The CSeries Dilemma. London Ontario: Ivey Publishing. Exhibit 4 PRODUCTIVITY amp; OPERATIONAL EFFECTIVENESS, GROSS PROFIT MARGIN FOR Y/E 2006 Source: http://www2. bombardier. com/en/7_0/pd f/annual_report_2007. pdf Source : http://www1. embraer. com. br/relatorios_anuais/relatorio_2007/english/ Exhibit 5 DEMAND FOR REGIONAL AIRCRAFT lt;100 SEATS Source: Taleb, A. , Hebert, L. (2011). Bombardier Aerospace: The CSeries Dilemma. London Ontario: Ivey Publishing.

Lysander the Spartan General

Lysander the Spartan General Lysander was one of the Heraclidae at Sparta, but not a member of the royal families. Not much is known about his early life. His family was not wealthy, and we dont know how Lysander came to be entrusted with military commands. The Spartan Fleet in the Aegean When Alcibiades rejoined the Athenian side towards the end of the Peloponnesian War, Lysander was put in charge of the Spartan fleet in the Aegean, based at Ephesus (407). It was Lysanders decree that merchant shipping put into Ephesus and his foundation of shipyards there, that started its rise to prosperity. Persuading Cyrus to Help the Spartans Lysander persuaded Cyrus, the Great Kings son, to help the Spartans. When Lysander was leaving, Cyrus wanted to give him a present, and Lysander asked for Cyrus to fund an increase in the sailors pay, thus inducing sailors serving in the Athenian fleet to come over to the higher-paying Spartan fleet. While Alcibiades was away, his lieutenant Antiochus provoked Lysander into a sea battle which Lysander won. The Athenians thereupon removed Alcibiades from his command. Callicratides  as Lysanders Successor Lysander gained partisans for Sparta amongst the cities subject to Athens by promising to install decemvirates, and promoting the interests of potentially useful allies amongst their citizens. When the Spartans chose Callicratides as Lysanders successor, Lysander undermined his position by sending the funds for the increase in payback to Cyrus and taking the fleet back to the Peloponnese with him. The Battle of Arginusae (406) When Callicratides died after the battle of Arginusae (406), Spartas allies requested that Lysander is made admiral again. This was against Spartan law, so Aracus was made admiral, with Lysander as his deputy in name, but the actual commander. Ending the  Peloponnesian War It was Lysander who was responsible for the final defeat of the Athenian navy at Aegospotami, thus ending the Peloponnesian War. He joined the Spartan kings, Agis and Pausanias, in Attica. When Athens finally succumbed after the siege, Lysander installed a government of thirty, later remembered as the Thirty Tyrants (404). Unpopular Throughout Greece Lysanders promotion of his friends interests and vindictiveness against those who displeased him made him unpopular throughout Greece. When the Persian satrap Pharnabazus complained, the Spartan ephors recalled Lysander. There resulted in a power struggle within Sparta itself, with the kings favoring more democratic regimes in Greece in order to diminish Lysanders influence. King Agesilaus Instead of  Leontychides On the death of King Agis, Lysander was instrumental in Agis brother Agesilaus being made king instead of Leontychides, who was popularly supposed to be Alcibiades son rather than the kings. Lysander persuaded Agesilaus to mount an expedition to Asia to attack Persia, but when they arrived in the Greek Asian cities, Agesilaus grew jealous of the attention paid to Lysander and did everything he could to undermine Lysanders position. Finding himself unwanted there, Lysander returned to Sparta (396), where he may or may not have started a conspiracy to make the kingship elective amongst all Heraclidae or possibly all Spartiates, rather than confined to the royal families. War Between Sparta and Thebes   War broke out between Sparta and Thebes in 395, and Lysander was killed when his troops were surprised by a Theban ambush.

Marketing Principles Essay Example | Topics and Well Written Essays - 750 words

Marketing Principles - Essay Example These approaches include effective competition through production of superior commodities cost effectively. Key marketing activities involves identifying exceptional consumer needs and tailoring products or services that will best serve their needs (Nellis & Parker, 2006, p). Therefore, producers should scrutinize the available market and identify deficiencies in order to design unique product for that specific market or create a new market for the available products. The marketers should ensure they design goods for specific groups because different people have different requirements for the same products. The products should be designed differently in terms of colour, packaging, size and pricing among other features to meet varying consumer tastes (Fuller, 1997, p.13). For example, Wilkinson has different products for different categories of consumers. This enables them to cover wider market and make greater revenue due to increased sales. Similarly, by designing their products dif ferently, the company is able to satisfy the needs of different clients more effectively. Marketers design marketing activities to satisfy different aspects of consumers needs. These include Products, Price, Place, Promotion, People, Positioning and packaging (Parkin, 2002, p.6). Consumers buy products and services for various reasons and for different purposes. Marketers should understand the needs for consumers in order for them to sell those commodities which consumers want most. They should carryout informative campaign to let consumers know that the products they require are available, and at what price, how to use them (Hill, 1998, p.13). The promotion activities should aim to influence consumer conduct by making them feel that certain product is capable of satisfying a specific need which other products from different sellers are not able to satisfy. Wilkinson has been facing stiff rivalry from other retailer in UK especially supermarket. They have reacted to this rivalry by designing new products for different market (Business Case Studies LLP, 2013). Their main targets today are students hence they are designing products which are more appealing and preferred by students (Dicken, 1998, p. 5). The marketers should ensure the product or services they offer are within the proximity of the potential consumers. For example, in Business Case Studies LLP (2013), Wilkinson has established their outlets close to learning institutions to ensure that students are able to get their products near their institutions when they need them. Wilkinson products are lowly priced to ensure they overcome rivalry and entice the student population in their business. Those products are attractively package to appear presentable to student consumers. Companies should develop different approaches to create, sustain and expand the market of their commodities in order to overcome their rivals in the same market. To achieve this, companies should ensure they have a wide range of co nsumer products in the market in order to win clients from different backgrounds. Wilkinson reacts to varying consumer needs as a retailer of various commodities like food, home, garden, office, and health and beauty products (Business Case Studies LLP, 2013). They sell groceries and supermarket goods to ensure clients get varieties of consumer goods under one roof. When developing a