Strategic Leadership Analysis Report: Bombardier Inc. - MGMT 403

This report provides a comprehensive strategic leadership analysis of Bombardier Inc., examining the company's position within the aerospace and transportation industries. It begins with an external and internal analysis, including a PESTLE analysis of the macro-environment and an assessment of the industry's structure using the Five Forces model. The report delves into Bombardier's resources, activities, and capabilities, highlighting its strategic planning for gaining and maintaining a competitive advantage. It explores the company's roots, evolution, and business strategies, emphasizing its innovative approach to product development and market positioning. The analysis covers the company's strategic overview, its response to market challenges, and its efforts to differentiate itself from competitors. The report also includes an appendix with a PESTLE analysis figure. This report is a valuable resource for understanding strategic leadership in a dynamic industry, providing insights into Bombardier's success factors and its approach to navigating a competitive market.

Running head: ANALYSIS ON STRATEGIC LEADERSHIP
Analysis on Strategic Leadership
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1ANALYSIS ON STRATEGIC LEADERSHIP
Table of Contents
External/Internal Analysis..........................................................................................................2
Strategy planning for gaining as well as maintaining competitive advantages.........................6
Reference List..........................................................................................................................14
Appendix..................................................................................................................................16

2ANALYSIS ON STRATEGIC LEADERSHIP
External/Internal Analysis
Analysis of structure of the industry in which Bombardier Inc. competes
Bombardier Inc. is one of the largest companies in the world that is involved in business of
manufacturing passenger trains as well as it is also renowned for manufacturing world’s
largest civil aircrafts (Us.bombardier.com, 2019). It has its headquarters in Quebec in Canada
and it approximately recruit 62,900 people in various operations in the industry from 60
different countries all across the world. It has a widespread reputation in the industry in terms
of ruling as a leader, an innovator who usually come up with various technologies as well as
it is also a remarkable trend setter (Platzer, & Mallett, 2015). However, increased forms of
competition at global level, uncertainties in the economy, rapid changes that are taking place
within the needs of consumers as well as certain other factors have been forcing the Company
to undertake strategic leadership approach in order to sustain in the competitive market.
Since certain years in the past, industries that work on harnessing Aerospace Engineering and
Technology has to confront with challenges due to recession in costs as well hike in prices of
oils. This has to lead to reduction in the interests, demands as well as confidence of clients in
terms of renewing as well as expansion of their individual fleets (Platzer & Mallett, 2015).
Therefore uncertainties that have been prevailing all around the world led to reduction of
demands with respect to business on aircrafts. Further globalization has also led to demand
towards various business aircrafts as well as these help people in travelling all over the world
at various sites and destinations in a very short period of time. Aerospace industry that
usually operates at global level has been undergoing steady growth since the year 2006
because of rising demands from various emerging countries and they are expected to grow in
near future.

3ANALYSIS ON STRATEGIC LEADERSHIP
Total amount of revenues that are usually collected from the market of aerospace industries in
the financial year 2009 were an approximate of $743.9 billion with an annual growth at
compounded rate of 4.9% for the period between years 2005 to 2009. Generation of revenues
at the market economy is of $210.8 billion in the financial year 2009 that can be equated to
approximately 28.3% of average value of market revenue (Us.bombardier.com, 2019). Since
the aerospace industry has been undergoing through variety of economic uncertainties as well
as face lots of instabilities, Bombardier has focus on strategic leadership approach in order to
win over the industry.
Macro environment in which Bombardier Inc. competes
Macro-environment factors mainly rely on analysis of various factors in the macro-
environment like Political, Economic, Social, Technological, Legal as well as Environmental
(PESTLE Analysis) and these have a significant impact on Bombardier Inc. Revenue earned
by the Company is approximate of about US $16.22 billion by the end of December in the
year 2017. (Refer to Figure 1: PESTLE Analysis in the Appendix Section)
Five Forces Model
The Company usually operate in a particular industry where there is low threat towards entry
of firms. Bombardier is a well-developed brand and it possess an advanced technology that
cannot be easily developed by other firms therefore new brands would not be able to match
with their popularity of services.
In the industries that manufacture planes, there exist a lot of substitute firms. Each firm
produce services in accordance to utilitarian services as well as capacities that are offered in
market. If Bombardier face threat due to other companies, then that would be in terms of
manufacturing of planes of same specs that would be adopted by them.

4ANALYSIS ON STRATEGIC LEADERSHIP
Bargaining power that exist within aerospace industry of that of buyers usually lie at
moderate level. Since there are very less options associated with manufacturing of planes,
therefore customers usually do not switch to other firms. Since planes have very high rate at
possible marginal rates therefore companies working in this industry would try to maintain
competition standards in order to retain their customers.
Suppliers also display moderate power since they possess as well as handle advanced
technologies over which the aeroplane manufacturer Bombardier usually depend on. In
addition, it is also known that companies that usually supply Bombardier various
manufacturing parts of planes, they do not want to lose their established customer and so they
maintain good relationship standards with Bombardier.
Bombardier usually face tough competition from several rival competitors in the aerospace
industry. Some companies like Mitsubishi Heavy Industries or Brazil Empreza Brazileira and
Airbus are mostly major competitors to this aeroplane manufacturing company. However
these companies have to give a large amount of effort in order to sustain their customers and
have to spend large amount of money on maintaining aerospace contract with that of airline
companies. Bombardier provide so good services that customers are already satisfied with
comfortable services provided by them and other companies cannot compete with it in these
terms.
Analysis of various resources, activities as well as capabilities of organization
On referring to generally accepted accounting principles (GAAP), it usually refer to IFRS
measures depending on which capital resources are available to the Company Bombardier
Inc. on the basis of Analysis of results associated with Aerospace as well as Transportation in
the Corporation at the end of fiscal year. In addition, the Company also focus on employing

5ANALYSIS ON STRATEGIC LEADERSHIP
skilled labour force for provision of best services in the aerospace industry (Baghai et
al.,1997).
The Company always looks forward towards bringing rich productivity, efficiency in terms
of manufacturing of planes as well as building resilience in the aviation industry. Various
efforts as well as activities usually pose goals associated with sustainable development. They
undertake designing of planes keeping in mind the environmental standards.
Aerospace activities that revolve around various capabilities of Bombardier and certain
facilities render the Company certain opportunities in relation to various skills as well as
technologies that allow them to create designs towards production of services that would be
able to meet the interests of new generation. Although the Company may be facing number of
challenges, various business fundamentals that exist in Bombardier Transportation always try
to maintain a firm position and they have a large portfolio that is entirely based on demands
of customers thus maintaining challenges with legacy projects.

6ANALYSIS ON STRATEGIC LEADERSHIP
Strategy planning for gaining as well as maintaining competitive
advantages
Strategic overview of the organization within a competitive environment
Bombardier Inc. started its family business since the year 1942 and Joseph-Armand
Bombardier invented the business strategies who was engaged in building as well as selling
in snowmobiles. The Company ultimately entered into aerospace industry by purchasing
Canadair in the year 1986 and that was followed by purchasing Lear Jet as well as Ireland’s
Short Brothers and also acquired properties of de Havilland. After opening its headquarters in
Canada, it got involved in the process of designing as well as manufacturing various products
in the aviation industry for example business as well as commercial jets, certain amphibious
aircrafts and this adds high value to individuals as well as other leasing companies. At
present, it usually possess 10 different manufacturing as well as engineering sites in 22
different countries all over the world. The Company also provide maintenance of these
service centres, distribution centres or aircraft services for example parts logistics, training
solutions as well as maintenance workshops of aircrafts.
Like most of the multinational firms, Bombardier also falls prey to immediate downturn that
has taken place in the economy of the world. Due to rising prices as well as decline in wide
demands for innovative as well as new aircrafts manufactured by Bombardier, the Company
has to face several decline in sales as well as rising debts that the Company is facing in the
market. This has ultimately led the Company to fall in the face of tough competition in the
market and it has the Company to lay off almost 3000 employees from their job (Platzer &
Mallett, 2015). However it has able to overcome this situation recently due to rising demands
in business travelling as well as manufacturing of business aircrafts from global level.

7ANALYSIS ON STRATEGIC LEADERSHIP
Operation of Company Bombardier in the form of a leader in aerospace industries usually
increase urge the other competitors like ALSTOM and Boeing to sustain the tough
competition in the market. Certain competitor companies usually take the financial help from
the government, and this makes Bombardier to face serious threat.
Bombardier usually involve in designing as well as manufacturing various innovative
products that has enabled the Company to acquire unique position in the market place. It has
portfolios for aircrafts at a comprehensive level and this has made the Company to hold a
ranking position in the market of regional aircrafts. It usually exercises differentiation
strategy in order to sustain competitive advantage over various competition companies. It has
a remarkable reputation for producing innovative services and this helps the Company to
evolve its products. The strategic leadership undertaken by the Company usually focus on
producing exclusive goods, achievement of execution at flawless level and this helps the
Company to meet various necessities of customers and thereby help to strengthen the position
of leadership.
Bombardier has also achieved development in the field of producing innovative C- series
commercial aircrafts that are mostly single-run and this helps to offer several services that is
compatible to producing superior level field performance. Lear jet 85 of Bombardier can fly
as faster than other aircrafts and Global 8000 business can travel faster than most other
business strategies. The Aircraft Portfolio Strategy Board of Portfolio of Bombardier usually
assess most of the new programs usually adopt Product Development Cycle for assessment of
most of the new programs (Gowen III & Tallon, 2005). In addition it is trying to expand the
business across the world by producing footprints and also undertake improvement towards
achieving efficiencies with respect to supply chain of products, it also has helped in
manufacturing of sites in the city of Mexico that usually take part in low cost process of
production. Through leveraging its extensive forms of portfolios, the Company always try to

8ANALYSIS ON STRATEGIC LEADERSHIP
bring improvement in production process as well as in various operations and therefore tries
to acquire profits at optimum level during tough economic situations.
Roots as well as evolution due to success of the organization
Capabilities/Competencies
There is a theory prevalent within the competitive market that position of Company is usually
an image as well as perception that others have made within same category. Bombardier
usually plays a leadership role within global market in the industries associated with
aerospace as well as rail transportation. It usually utilize different variety in the field of
positioning strategies in order to sustain a leadership position in marketplace. Through
placing a position relative to various competitors, Bombardier usually build an aim towards
producing innovative products and this would beat various offerings of the competitors.
Through placing a position in the market, Bombardier can meet the necessities of
transportation of that of customers by facing competition through innovations in engineering
works as well as it can also be able to meet various challenges. Its position in the leadership
role as well as various perceptions with respect to innovation led the Company to generate
revenue of approximately $18.3 billion in US by the end of the year 2011.
Strategies towards business
Bombardier is trying to expand its business by building various long-term partnerships in
various emerging markets through localization of various products, establishment of
operations, maintenance of presence as well as investment towards public as well as private
partnerships. Bombardier initially introduced two different core elements. The first type of
element usually involve advanced process in terms of quality planning all over its phases of
management of the project (Basu, 2009). The second particular element usually emphasizes
on different processes associated with identification of various problems, solving of various

9ANALYSIS ON STRATEGIC LEADERSHIP
problems, prevention as well as improvement of processes. This particularly initiative helps
to differentiate its products and allow delivering flawless elements towards promises.
Strategies at corporate level
Bombardier is actually utilizing different corporate strategies for growth rate at horizontal
level and this is supported by four different capabilities at competitive level. Bombardier
usually invest lots of money in mobility solutions that also helps to broaden geographical
perspectives in terms of success of the Company (Thomas, 2013). Strategies at corporate
level are usually embedded in the competitive framework that harnesses advanced
technologies, undertake active management of risks as well as various responsibilities at
corporate societal level, this helps to render strong decisions in financial grounds.
Strategic decisions
The Company usually pursue various excellence on the basis of customer focus and it usually
apply very lean manufacturing form of principles that take place throughout entire lifecycle
associated with products.
Changes undergone by organization with time
The Company brought changes in the structure of the organization by announcing leadership
levels within team. Through this process, Danny Di Perna who was appointed as the new
president in Bombardier Transportation was thought to have brought operational efficiencies
and therefore it would help in improvement of quality of the organization (Helmold &
Samara, 2019).
Bombardier also confirmed to bring C-Series Aircrafts into entry services by making solid
progress and therefore bring suitable performance results in accordance to expectations of the
Company. These aircrafts were designed as such that it would comprise of 100 to 149 seats,

10ANALYSIS ON STRATEGIC LEADERSHIP
family of aircrafts of C-Series usually combine advanced form of materials, and technologies
associated with leading edges as well various methods proven to meet requirements towards
commercial airlines. The aerospace engines are usually powered by Pratt & Whitney Pure
Power PW1500G engines and this offers 15% operating costs and 20% of advantages on fuel
burn (Jazouli & Mitchell, 2017). Through introduction of these new technologies, it helps to
meet the interests of customers within competitive forms of market.
Various new as well as emerging competitors
Various new as well as emerging competitors in the market generate opportunity for various
manufacturer companies of aircrafts therefore Bombardier is facing tough competition to the
new entrants in the market. There is aggressive competition in the market and as a result of
this various challenges are faced due to advanced producers in the economy. Air travel as
well as freight shipments usually undergoes through growth and methods of profitability
within existing firms. It generally lays strong foothold in the economic market.
Action of industry forces on that of organization
Global economy usually take more number of years for being able to recover pronounced
downswing in the economy. There has been sustainable methods in terms of progress of the
Company as it involves various stakeholders of the Company to strengthen the infrastructural
development in the country (Helmold & Samara, 2019). Project that was held at Gold Coast
was positioned by Bombardier and this was made possible through signing of contracts that
worth cost of $4.1 billion in the State of Queensland. Wide number of forces also help the
Company to build industrial standards and ensure safety of health of human beings as well as
that of environment.
Outlook associated with the organization

11ANALYSIS ON STRATEGIC LEADERSHIP
Bombardier Flexity Outlook is basically a series of various forms of transportation at global
standards, these vehicles undergo through modular patterns of design as well as approach that
increase the demands of passengers who travel through this transport means. It has various
forms of vehicles that are designed and their operations run across various parts in the world.
This new form of outlook actually draw attention of large number of people and therefore it
increases large amount of profits in the market.
Major types of opportunities as well as threats
Various forms of opportunities faced by the Company are as follows:
 Growth in terms of development that take place in the market of aerospace products in the
market
 Various form of innovations introduce change in the lifestyle of people as well as
spending of consumers (Pride, 2017)
 There has been rapid demands towards high speed as well as trains that would prove to be
energy efficient
 There is a good production of aircrafts that are mostly fuel efficient as it involve less
combustion of fuel energy and also can be run at optimum costs
Various threats faced by Bombardier:
 There has been a loss due to share of market as a result of tough competition that often
prevails in the market
 There is often volatility due to high prices in oils that is mostly used to run the vehicles
like aircrafts and combustion engines.
 Due to posing various regulations over environmental situations, it increase the cost of
operation as well as fuel.
(Refer to Appendix, Figure 2: SWOT Analysis for detailed display of 4 parameters)