Bombardier Transportation and the Railway Market in Europe Essay

3428 WordsNov 9, 201414 Pages
Bombardier Transportation and the Railway Market in Europe International Business Strategy IBM 2011 – 12 Christophie Bianchi Pearl Ansheryn Lu Leatrice San Juan Neža Erjavec Clemente Baissat ESPEME, EDHEC Business School 26 September 2011 I. Overview of the Railway Industry The rail transportation industry experienced difficulties as a result of the challenging economic conditions during 2008-2009. It has been slowly recovering in recent years. Because of the low demand for goods, freight and passenger transport volumes decreased significantly. Despite being impacted by the economic environment, many governments decided to invest in rail transportation in 2009-2010. This led to a very significant market during the economic crisis. Policy makers and planners recognize the sustainable long-term benefits of efficient infrastructure for their economy, such as reduced commuting time, limited greenhouse gas emissions and facilitated mobility.. Railway transportation has emerged as a fast, convenient, safe, clean, and low-cost alternative to air and road travel. According to an analysis made by Cisco Internet Business Solutions Group (IBSG), high-speed rail traffic has more than tripled over the past decade, and rail has surpassed air travel in the short-haul trip segment just in Europe alone. Because of this, rail operators are focused on growth and strategies to improve customer service and increase the efficiency and productivity of their operations. Among the railway market players, Bombardier is the current world leader. II. SWOT Analysis of Bombardier and the Railway Market A. Strengths 1. World leader in a growing market and competitive environment. Increased EBIT Margin to 6.6% in 2011 compared to 6.2% in 2010. 2. Free cash flow of $744 million, exceeding EBIT of $602 million. 3. Order intake of $14.3 billion

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