Bombardier company is a global leader in transportation industry. The company is involved in the operations of developing game-changing and innovative trains and planes. The services and products of Bombardier provide the best transportation experiences which set new targets and standards in consumer comfort, reliability, safety and energy efficiency. The company is employing more than 60,000 people. The company is headquartered in Montreal, Canada. The company has its engineering and production sites in 25 countries related to segments of Business Aircraft, transportation, Aerostructure, engineering and commercial aircraft services (Bombardier, 2020).
VRIO model is a marketing analytical tool, which is used by the company for determining the capabilities and resources. These resources will help the company in exploiting the resources for creating competitive advantage for the company. The four components of the model are: Value, Rarity, Imitability, and Organization. Here is the detailed VRIO analysis of Bombardier.
Value
This is the first component of the VRIO analysis. This determines the valuable resources of the company that adds value. The company can exploit these resources to gain competitive advantage over competitors, which results in availing more opportunities. The company can strengthen its position and increase the market share. Bombardier is a global leader in the industry and this brand equity and market share is the valuable resource for the company. The company is famous for its technological advancement and innovation which is highly valuable. These resources help the company in achieving highest market growth rate (Chen, 2015).
Rarity
The rarity is the second component which deals in determining the rare resources and capabilities. Resources which are not that common or available with only few companies, it will be beneficial, or else every company will use it according to their own expertise. The corporate strategies of Bombardier are rare and valuable, as company is leading the industry and achieving its objectives. The innovation techniques and creativity are also rare, as competitors like Boeing are working hard to be on the top position, but Bombardier is retaining its position very well. The company’s strategy of localization, low-cost production, differentiation strategy, etc. are well appreciated.
Imitability
This component determines the resources and capabilities to be difficult to replicate or costly to possess. The resources which are not easy to duplicate becomes beneficial for the company, as it can take advantage of it. Moreover, imitability along with rarity and value, it will help the company in achieving competitive advantage. The resources of the Bombardier company like strong financial performances, brand equity, technological advancement, customer service, production facilities, low manufacturing costs, and many others are costly to imitate. The company’s R&D department is highly efficient and skilled which brings new and innovative products.
Organization
The resources and capabilities need to be organized by the company or else the competitive advantage will not be for long run. To attain the sustained competitive advantage, it is important to achieve all four components of the model. Bombardier is a well organized and well-equipped company, which make sure to hire trained and skilled employees. The company has diverse nationality employees who are motivated and devoted. The company also improve its supply chain to have fast network and distribution channels. Moreover, it is working along with its objectives and goals. The roles and positions are well-defined along with organizational structure and hierarchy (Chen, 2015).
Conclusion
Bombardier is a global leader in the industry. The company has achieved sustained competitive advantage in order to retain its position. The company is growing and maintaining the market growth. The company is well-equipped and have motivated team which helps it in achieving sustained advantages for log run.
| V | R | I | O | ||
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✓ | ✓ | ✓ | Competitive Parity | |
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✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
|
✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
|
✓ | ✓ | ✓ | ✓ | Sustainable advantage |
|
✓ | ✓ | ✓ | ✓ | Sustainable advantage |
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✓ | ✓ | ✓ | ✓ | Competitive parity |
References
- Bombardier, 2020. About us. [Online], Available at: https://www.bombardier.com/en/about-us.html, [Accessed on: 30th March, 2020].
- Chen, X. 2015. Bombardier Inc. strategy analysis. [Online], Available at: https://www.slideshare.net/XingyueLiaChen/bombardier-inc-strategy-analysis-group-6, [Accessed on: 31st March, 2020].
- Perry, A. 2018. VRIO Analysis of Bombardier Aerospace. [Online], Available at: https://www.case48.com/vrio-case/17842-Bombardier-Aerospace-The-CSeries-Dilemma, [Accessed on: 31st March, 2020].