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30 April, Bombardier Industry According to Bombardier web page, Bombardier Inc. was established in 1902 and was d TheLocomotive and Machine Company of Montreal (Limited). It is mainly a transport vehicles, equipment and accessories manufacturer with two major divisions Aerospace and Rail. Its share price was 5 US Dollar in Toronto Stock Exchange in July 2010. Bombardier has an enterprise value of 9,364 million US Dollar and market cap of 8,159 million US Dollars. HISTORY In 1930, Joseph Armand Bombardier invented his snow vehicle which was later converted to seven seated for commercial use in 1937.

These snow vehicles were further expanded to 12 seated capacity for ambulance and other transportation services in 1940 under the name L’Auto-Niege Bombardier Limitee. In 1949, Canadian government’s policy to remove snow from roads presented and major setback to the company but Bombardier responded by searching new markets and inventing a truck with interchangeable wheels and skis. In 1966, company went public to seek larger expansion and growth (Bombardier Inc. 25). Bombardier Recreational Products launched Sea-Doo watercraft which considerably increased its share in recreational market.

Bombardier rebanded ATV as Can-Am, an all-terrain vehicle and started production of a three wheel open roadster vehicle under brand name Spyder before this division was sold out to Bombardier family in 2003 (Delmont 9). In 1974, Bombardier Transport won a mass transit contract to manufacture more than 400 cars for subway system in Montreal. Following this, in 1984 company had breakthrough success in contracting New York City Transit Authority for more than 800 subway rail transit cars. Bombardier planned to went global through acquisition of BN Constructions Ferroviaires et Metalliques S.A. Belgium in 1986, ANF Industrie France in 1989, Constructura Nacional de Carros de Ferrocarril Mexico in 1992, Waggonfabrik Talbot GmbH & Co.

and Deutsche Waggonbau AG (DWA) and DaimlerChrysler Rail Systems GmbH (Adtranz) Germany in 1995. Bombardier has presently contracted rail vehicles for Germany, commuter trains for France and intercity trains for South Africa. Bombardier is presently world’s leading supplier in rail transport industry (Knutton 12). Bombardier diversified its business by acquiring Canadair, leading aerospace manufacturing and engineering services providing company in Canada to enter aerospace market as stated in its website.

The fleet mainly consisted of Challenger Business Jet and Cl-215 Amphibious aircraft. After this acquisition, Bombardier launched a regional air travel program by designing 50-seat, 70-seat and 100-seat jet aircraft. Following this program, Bombardier made efforts to sequentially acquire aircraft manufacturing organizations to strengthen its capabilities and geographical presence in aerospace industry including Short Brothers in Ireland, Prsocor Engineering Limited in UK, Learjet Corporation in USA and Boeing’s de Havilland division in Canada.

Later in 2000, Bombardier acquired Skyjet International and upgraded its entire system to provide travellers unlimited and unrestricted access for flight plans. In 2006, Bombardier established an aerospace manufacturing unit in Queretaro, Mexico to support its spreading business. Bombardier Aerospace has recently launched CRJ1000 and CRJNextGen regional aircraft programs to revolutionize regional air travelling. Bombardier Capital with headquarters in Colchester offered financial services throughout the region since 1973.

In 2001, division limited its financial services to present retailers and opted for downsizing. Moody’s ranked the credit rating of Bombardier Capital as questionable risk in 2004, which resulted in selling of said division to GE Commercial Finance. MISSION AND CORE VALUES Bombardier in its website has aimed its mission and vision is to be the world’s leading manufacturer in aerospace and rail industry with a commitment to provide high value and services through innovation, safety and performance.

Main core values of bombardier are integrity, commitment to excellence, and customer and shareholder oriented culture and services. WORLD PRESENCE Bombardier is a leading transport manufacturing and solutions providing company having headquarters in Montreal with 69 production and engineering setups and 65,400 employees in twenty-three counties and a global network for providing services to its customers. Aerospace division has more than 30,000 employees and 10 production units while in rail transport around 35,900 employees are positioned in 59 production and engineering units.

In Belfast, Bombardier has established aerospace facilities that include manufacturing of complete center fuselage, nacelles and wing components of CRJ Series, CSeries, Learjet, Challenger and Global 5000/Express XRS aircraft. Bombardier has also established facilities for major nacelle components of engines including Rolls-Royce Trent 775, Rolls-Royce RB211, Rolls-Royce Deutschland BR710, General Electric CF34 and IAE V2500 powerplant at Belfast. In Denmark, two commercial airlines SAS and Cimber Sterling are using Bombardier’s CRJ900 and CRJ200NextGen aircraft respectively.

Bombardier is presently supporting 5 regional aircraft companies in China operating 29 CRJ Series aircraft including Shandong Airlines and Shanghai Airlines. Bombardier has established its warehouse for business aircraft parts in Frankfurt to ensure consistent and timely supplies to Africa, Middle East, Europe, and Asia. In Germany, Lufthansa has acquired CRJ Series regional jet aircraft for its operations. Air Berlin and Augsburg Airways in Germany has also acquired Q-Series turboprop aircraft from Bombardier.

Bombardier has managed more than 26% market share in European aviation industry becoming the second largest supplier of business aircraft. According to Wikipedia information page on bombardier, company has located its transportation production and service facilities globally. In Canada, Bombardier has established its transportation engineering and manufacturing facilities in Saint Bruno, Quebec, Kingston, thunder Bay and La Pocatiere. Manufacturing facilities in USA are in New York and Pittsburg while major production facility is in Sahagun, Mexico.

Bombardier has also located its transportation production facilities in Europe to support the concerned markets, like freight rolling stock is in Czech Republic, passenger vehicles in Belgium, metros in France and high speed passenger trains in Germany. Production facilities for FS Class E464 Ligure and NSB Class 73 and 71 are located in Italy and Norway respectively. Another manufacturing site for transportation vehicles is located at Wroclaw, Poland. Bombardier has established MITRAC Powerlab in Zurich to test the reliability and quality of the rail transport and locomotives drive and safety systems.

More than 110 engineers are employed in the testing lab which has the capacity to simulate and test almost all the rail systems presently being operated worldwide. In India, Bombardier has started its manufacturing facility under brand name Movia. Bombardier has formed joint ventures with Chinese companies namely Qingdao Transportation Ltd and Changchun Bombardier Railway Vehicles Co Ltd. to capture Chinese market. BUSINESS PROCESS When even an order is placed with Bombardier, a comprehensive contract is formulated with all details in writing to accurately figure out customer needs, requirements and expectations.

Based on the product on demand, material that has already passed required quality criteria is supplied to concerned department. After the product has been manufactured, it is tested and simulated under real time conditions to check for stability, reliability and promised quality. After test completion, product is delivered to customer in accordance with contractual obligations. Bombardier focuses on providing after sales services to its customers which strengthens its repute in the market. To ensure safe working and environment to its employees, Bombardier has implemented ISO 14001 and OHSAS 18001 Standards at its all facilities.

CORE COMPETENCIES Bombardier has won many major projects and contracts globally, one reason for which is excellent quality and reliability of products and maintenance and service of delivered products. Another key feature of Bombardier is its ability to form alliance and joint ventures with local company to make its products more appealing to local population. Bombardier has the ability to outbid smaller companies due to its known competency and strength in the market, for which it mainly relies on air shows, trade shows and magazines to promote its repute.

According to Financial and Strategic SWOT Analysis Review published in February 2011, Bombardier experienced its shear decline in its profitability by almost 163% to a loss of more than 600 million US Dollar after 9/11 incident. To regain its profitability and share in the market, Bombardier needs to exploit its strength to effectively benefit from opportunities available. Main strength of the Bombardier is efficient utilization of its resources. Since the company holds a strong base, it has the ability to use and modify its infrastructure and products to customize and explore new markets.

Another strength of the company is its global presence which would allow the company to access all present and potential markets. An efficient information system would enable the company to gain access to latest development in market and consumers. Bombardier has to focus on restructuring of its aerospace division to harvest benefits from latest developments in the industry (Aircraft Engineering and Aerospace Technology 17). Apart from adverse effects of 9/11 events, aviation industry is gaining its confidence on travellers thus creating new opportunities for the aviation and transportation industries.

Strategic investments and replacement demands are presenting Bombardier with greater opportunities than before. North American countries, China and Russia are with many markets in demand of effective mass transit systems which are never tapped before. In next decade, more than 25000 railway cars and locomotives and greater portion of civilian aircraft fleet is expected to be due for replacement in Russia (Air Guide Business 29). However, limited confidence in investors and pending legal issues are weak areas of the company which Bombardier needs to address in near future to regain its confidence on market.

Boeing and Embraer and two main competitors of Bombardier, posing threat for losing its market share. Also fluctuating currency exchange rates are posing threat to Bombardier’s ability to repay its loans. Till date, Canadian Dollar’s strong position in global market, has helped Bombardier to regain its financial state but any decrease in value of Canadian Dollar is likely to adversely affect debt repayment and revenues of the company (Emerging Markets Business Information News 48). RESPONSES TO FUTURE CHALLENGES Bombardier mainly deals in aerospace and transport industry that requires high international standards of safety and quality.

Any failure of such products may have implications on customer confidence and lawsuits. Company should also concentrate on avoiding duplicity and waste of efforts within the organization. Bombardier has to adopt a project management approach to minimize its risk in relation to stakeholders and operations. It is critical for Bombardier to pursue Chinese and Russian markets with caution to economic stability and governmental policies. Bombardier should also focus on acquiring domestic finances and relying on Canadian Dollar to increase its profitability and lower its dependency on foreign debts.

Work Cited Bombardier Inc. - Bombardier - Home. Web. 30 Apr. 2011. . "Bombardier." Wikipedia, the Free Encyclopedia. Web. 30 Apr. 2011. . Bombardier | Aerospace | Business Aircraft | Bombardier Learjet. Web. 30 Apr. 2011. . "Bombardier Aerospace Releases Annual Aircraft Market Forecasts." EMBIN (Emerging Markets Business Information News) 22 July 2010. Print. "Company Watch - Bombardier." AirGuide Business 2 Nov. 2009. Print. "Shorts Transformed After Bombardier Takeover." Aircraft Engineering and Aerospace Technology 65.4 (1993): 16-18. Print. Bombardier Inc.

Bombardier at a Glance. [Montre?al]: Bombardier, 1991. Print. Delmont, Joe. "It's Official: Bombardier Is Now BRP, Inc." Powersports Business 28 June 2004. Print. Review. Bombardier Inc. (BBD.B) - Financial and Strategic SWOT Analysis Review. Bombardier Inc., 08 Feb. 2011. Web. 30 Apr. 2011. . Knutton, Mike. "Bombardier Becomes The World's Biggest Railway Equipment Supplier(Management Matters)." International Railway Journal 1 June 2001. Print.