Bombardier Transportation Switzerland operations and services

Bombardier Transportation Switzerland

History of Bombardier Inc.

According to its website, Bombardier, Inc. is a Canadian-based global transportation company, mainly focused on airplanes and rail transportation. Bombardier, in contrast to its current speedy, dynamic, and high-flying image did not begin as a rail and plane production facility. Instead, according to the "About us: History" section of its website, it began with a humble snowmobile: "Born in 1907, Joseph-Armand Bombardier builds his first "snow vehicle" at the ripe age of 15. His motivation? To help people travel across the snow-covered roads of rural Quebec in Canada. In 1937, J.-Armand achieves his first major commercial success with the launch of the seven-passenger B7 snowmobile" ("History: 1930s," Bombardier, 2009).

Until the 1970s, the company named after its founder, Bombardier, emphasized its innovative snow transportation product, but then the oil crisis forced it to diversify because of the high cost of fuel and the new demand for greener, more efficient mass transportation. Soon, it secured first contract to design Montreal's subway system ("History: 1970s," Bombardier, 2009). The 1980s saw further encroachments by the company into the airplane and rail market. The company today proudly identifies itself as a 'world class,' or luxury brand name in commercial and business jets, as well as a provider of the most technically advanced rail transportation equipment, systems and services. The company's main branch remains headquartered in Montreal but has divisions worldwide, including Switzerland.

History of Bombardier Transportation

In 2001, Bombardier relocated its rail transportation operations from Montreal, Canada, to Berlin, Germany. This was in response to the demand in Europe for extensive, fast rail networks. The rail division of Bombardier, Inc. is known as Bombardier Transportation and has a presence in more than 35 countries. It identifies itself as the world's rail equipment manufacturing and servicing industry. It offers "ingenious" rail solutions, according to the company's website, to both private and public enterprises ("About us: History," Bombardier, 2009).

Overview of Bombardier Transportation Switzerland

Switzerland is a small but centrally located nation. This makes it a vital hub of rail transport, as well as a popular destination for skiers. It also is a very diverse nation, despite its small size, encompassing individuals of French, German, and even Italian origins. The company has stations in Villeneuve, Winterthur, and of course Zurich ("Switzerland," Bombardier, 2009).

External analysis

What current PESTEL issues impact Bombardier Transportation?

Political: The emphasis on 'going green' has created a new interest in mass transportation.

Economic: the credit crisis has limited both private and public funding for transportation and major structural efforts, although some governments may invest in infrastructure as a method of job-creation and economic stimulus (following the lead of the United States).But Switzerland has been specifically affected in a negative fashion because of increased scrutiny about its highly secretive banking system. This could reduce interest in investing in the nation, although not necessarily throughout Europe, and the company's Swiss branch could still benefit from overall increases in profits.

Socio-Cultural: While public transportation is looked upon favorable, luxury high-tech brand items have fallen out of favor and are widely regarded as unnecessary. The company's brand image may not entirely be helpful in this regard.

Technological: Rail transport has become speedier and more efficient, thus increasing the likelihood that people may avail themselves of it

Environmental: A new commitment to sustainable growth has also turned the world's eyes to innovative rail solutions.

Legal: The formation of the EU and the greater interconnectedness of the European Community have increased demand for rail transportation

Does the company have competition?

Other airlines that service the major European nations, such as Continental, Swiss Air, to name only a few, might pose competition for the company's domination of Europe's market for travel. 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.

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.