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Bombardier Strategic Plan

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by

Molly Wei

on 28 November 2013

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Transcript of Bombardier Strategic Plan

Strategic Plan
Agenda
Organizational Assessment

Strategic Plan

Action Plan and Evaluation

Questions
Organizational Assessment
Strategic Plan
Action Plan & Evaluation
General Information
Founded in Montreal, Quebec, 1937
In 1970, entered the rail technology industry
In 1986, expanded into aerospace

Mission and Vision
Vision:
customers, employees, suppliers, investors and shareholders, and communities.

Missions
To be the market leading manufacturer of business jets, commercial turboprop, and narrow body aircraft. (Aerospace)

To provide the most complete portfolio of rail solutions and services. -- leading the industry in safety, reliability and efficiency.
Internal Assessment
External Assessment
Market Analysis
Plan of Action
1. Increase CSeries sales


Avoid losing out on bids

Into service by the end of 2014

Publish performance statistics
Thank you
Questions?

Improve CSeries sales. Total after 5-years 450.

Increase Regional jet sales, after 5-years attain a 40% market share.

Manage costs. Over 5-years, reduce manufacturing costs by 5%

Improve CSeries sales. Total after 5-years 450
Airbus A320 NEO
Boeing 737 Max
Bombardier CSeries

Increase Regional jet sales, after 5-years attain a 40% market share.
Bombardier CRJ
Embraer E-Jet
Manage costs. Over 5-years, reduce manufacturing costs by 5%
2003
71
% 2012
24
%
2003
29
% 2012
76
%
2487
1609
177
Strategic Options
Market Development. Target new routes in high growth regions.

Expedite flight testing. Restore confidence.

Market Penetration through price reduction.
Airbus A319 NEO
Boeing 737 MAX 7
Bombardier CS100
Embraer E195
$ 92.0 M
$ 85.1 M
$ 58.3 M
$ 40.0 M
Strategic Options
Invest in R/D to find new cost effective materials.



Establish more factories in developing markets.

Introduce an IT System to manage inventory.

Divestiture. Sell or discontinue under performing lines.

Recommendations
Improve CSeries sales. Total after 5-years 450.


Increase Regional jet sales, after 5-years attain a 40% market share.



Manage costs. Over 5-years, reduce manufacturing costs by 5%
Strategic Options
Continue with the CRJ program.
Introduce a clean sheet regional jet.

Strategic Options
Market Development. Target new routes in high growth regions.

Expedite flight testing. Restore confidence.

Market Penetration through price reduction.



Bombardier CRJ Embraer ERJ
Engines
Labor / Engineering
Materials
39%
29%
14%
Regional Jet Market = 50 to 100 seats

Q400 70 to 80 seats
CSeries CS100 110 seats
Market Penetration through price reduction.
Continue with the CRJ program. Market the Q400 and CS100 as a viable alternative.
Establish more factories in developing markets.
Their is a high cost of manufacturing associated with trains and planes.

Bombardier is a unionized work environment.

Today, Bombardier is the third largest civil aviation manufacturer and the global leader in rail technologies
Bridge the distance, and cross places safely
Strengths
Weaknesses
Intangible assets
Strong branding
Diversified
Good business ethics
Quality control
Unionized
High R&D costs
Wide spread manufacturing network
Trains vs. planes
Risks of layoff
Opportunities
Threats
Public transportation
Energy sustainability
Globally, a growing economy and middle class
Recession
Rising fuel prices
Innovation
Accidents and terrorism
Competition
Products and Services
Transportation
Rail vehicles
Propulsion and controls
Bogies
Transportation systems
Rail control solutions
E-Mobility solutions
Services
Aerospace
Business aircraft
Commercial aircraft
Amphibious aircraft
Specialized aircraft
FlexJet

Online services
Service and support
Parts service
Maintenance, and aircraft training
Target Market
Transportation
Particular lifestyle

Primarily in Europe

Developing countries
Aerospace
High demand in North America

New target in military
Competitors
Transportation
Alstom and Siemens

Advantage:

Diversified product offering
Expanded globally
Aerospace
Airbus and Boeing

Embarer and other smaller companies

Advantage:

Diverse aircraft portfolio
Performance Evaluation
Increasing CSeries sales:

1. Target: 273 aircraft - 2014-2017
~68 annually

2. Reduce unsuccessful bids

3. Target option sales
Plan of Action
2. Increase regional jet market share

Market CS100 and Q400 as alternatives and prove their versatility
Performance Evaluation
Growing regional jet market share:

1. Assess growth in comparison with Embraer and market as a whole

2. New market growth between regional jets and larger narrow-body aircraft
Plan of Action
3. Reduce manufacturing costs by 5%

Implement SAP's IT services company wide
Challenge all divisions to be more efficient
Expand Aerospace manufacturing into India/Asia
Performance Evaluation
Reducing manufacturing costs:

1. Review SAP's data to find areas which need improvement

2. Involve employees in all levels

3. Invest in manufacturing facilities in India/China
Full transcript