Currently, the commercial airplane market for mid to long-range airplanes is dominated by Airbus and Boeing, with Boeing occupying approximately 43% of the market. However, Canadian Manufacturer, Bombardier is trying to take a piece of the market with the introduction of their new mid-range airplane, the C Series jet. The jet is competing with Boeing’s 737-700 and Airbus’ A319. Unlike the Bombardier CS100, both Boeing’s and Airbus’ airplanes are already well establish and known for their reliability and they currently have an oligopoly in the mid range aircraft market.
In order for Bombardier to have success with their new C Series airplanes, the company would need to differentiate themselves from its competitors. The C Series’ price tag, at only $62 million, compared to Boeing’s $76 million and Airbus’ $83.6 million airplanes. In many aspects, including range, cruise speed and size, all three airplanes are similar and are manufactured by well known and reliable companies. Because of the similarities, the huge price difference would give Bombardier an advantage in the market. This would mean that Bombardier, at least with its C Series airplanes, is following a Focus Strategy (Low Cost) since Bombardier is only focusing on mid sized airplanes and is pricing it much lower than its competitors.
Sources:
http://www.businessinsider.com/infographic-bombardier-c-series-2014-9
http://www.quickmba.com/strategy/generic.shtml
Image:
http://airchive.com/blog/wp-content/uploads/2013/02/CS300-2.jpg