Bombardier's market entry strategy through innovation and acquisition in aircraft manufacturing

Global Entrepreneurship

Global Entrepreneur

The market entry strategy used by the Bombardier is of differentiation and innovation. The company is using this kind of strategy as it thinks that it is in the business of know-how (Prahalad and Hamel, 1990). For example, Bombardier marked an important milestone in corporate aviation with its entry into service of the first completed Bombardier Challenger 300 business jet on January 8, 2004. This Challenger 300 officially becomes the first purpose-built aircraft in the emerging super-midsize market segment to enter service.

Since its introduction, the Bombardier Challenger 300 has enjoyed one of the most successful introductions in aviation history, as its all-new design is tailored to market demands for a reliable, cost-efficient, transcontinental business jet with a spacious cabin. The Bombardier Challenger 300 was launched at a time when the term 'super-midsize business jet' was just a concept. However, with the introduction of Challenger 300, this met specifically this need and served a segment of customers that wanted a luxurious flight.

With the Challenger 300, Bombardier Aerospace has taken unprecedented steps to ensure that every aspect of this business jet is designed for utmost reliability, and that the customer support infrastructure for the aircraft surpasses previous levels of readiness at entry into service. Bombardier conducted extensive testing of the Bombardier Business Aviation Services (BBAS) infrastructure by extending Function and Reliability (F & R) testing beyond FAA requirements to include line maintenance and support systems.

Also, with its innovating techniques that demand low maintenance, high durability, lower sound emissions, MoGas capabilities and the best power-to-weight ratio in their class, the new Bombardier aircraft engines represent a new kind of engine that offers pilots utmost comfort and control. Bombardier believes that the success of its products depend on its reputed innovative know how, management discipline, technical capabilities and engineering expertise. For example, with the introduction of a piston aircraft engine and demanding and environmentally conscious world expects, Bomb successfully developed an innovative aerodynamically airframes that offer utmost comfort to pilots.

The Bombardier's innovative designs, for example V220 and V300T engines are far superior in durability, quality and reliability as their features result in the elimination of shock, and allow smoother operation, as well as offering easier maintenance than current aviation piston power plants (Dyck, Buckland, Harder, & Wiensee, 2000). Their MoGas capability, use of propeller speed reduction units, and mufflers also ensure that the Bombardier V220 and V300T can meet the future competitive challenges of the business.