Bombardier Transportation Switzerland History of Essay

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Car travel may also pose a threat if gas prices continue to 'idle' or decline as the economy worsens.

Do its customers have special requirements?

In response to consumer demand and a shifting political climate, Bombardier has tried to incorporate sustainability into its business model to a greater degree. Providing rail travel in a way to reduce the planet's and the company's carbon footprint has become a core part of its mission ("Corporate responsibility," Bombardier, 2009)

Internal analysis

Current organization/structure

Bombardier is organized into two separate sections, rail and aerospace, both of which have a presence worldwide.

Current financial analysis

The company's financial performance is strong. On January 31, 2009 Bombardier "showed improvements in revenues, profitability and a robust cash position. Revenues increased by 13% to reach $19.7 billion" and Bombardier Transportation specifically "Bombardier Transportation's revenues totaled $9.8 billion, an increase of 25% over last fiscal year" ("Bombardier, Marketwire, 2009).

Most recent major decisions or changes

"In November 2008, Bombardier Transportation inaugurated a state-of-the-art railway vehicle manufacturing facility in India, the first to be wholly-owned by a global foreign company in this country. Closely working with its main customers to continue research on modular and flexible train platforms led Bombardier Transportation to sign a framework agreement with Deutsche Bahn AG (DB) in January 2009" ("Bombardier, Marketwire, 2009).

Strengths

Bombardier's sustainability emphasis in an increasingly 'green'-focused world has proved profitable. A new interest in rail transportation to reduce the carbon footprint across Europe has generated interest in the company and favorable press.

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Opportunities

A newly powerful EU requires a continuing commitment to rail transportation. Worldwide, developing nations such as India and China need more extensive and complex rail systems -- this will bolster the company's market position overall, including in the Swiss market.

Weaknesses

The company's luxury and 'high tech' image could give it an overly exclusive image that could harm it in today's economy.

Threats

The credit crisis and high government deficits combined with fears of inflation could forestall major investments in high-tech rail projects.

Future business strategy options available for Bombardier Transportation Switzerland

Continuing to emphasize diversification, globalization and sustainability seems likely: "With the equivalent of 2.5 years worth of revenues already in backlog, the current recession should have a limited impact on Bombardier Transportation as the fundamentals of the industry remain strong. Bombardier Transportation, therefore, reaffirms its goal to improve its EBIT margin to 6% for fiscal 2010" ("Bombardier, Marketwire, 2009).

Your recommendations

Further 'greening' in its marketing campaign, deemphasizing its luxury options in favor of affordability and sustainability seems to be the most advisable way to continue its path for growth.

Conclusion

The company's durability makes it poised to succeed, provided Bombardier Transportation is not unduly hampered by the recent purchases of luxury items by the aerospace division of the company.

Lessons learned

Sustainability can lead to profitability and a recession does not mean an inevitable loss of profits.

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