Abstract
The rail equipment industry is divided into six departments: services, propulsion and controls, total transit systems, rail control solutions, rolling stock and fixed installation. First and foremost, moneymaking policies cannot go apart from public subsidies: Government regulations are to be taken into account for companies to be efficient. The trend from public management to private companies compelled passenger rail car manufacturers to make the industry more cost-effective. To do so, those firms could bet on diversification and government subsidies.
Concerning Bombardier Transportation (BT) and its specific business model, it differs from its competitors. BT defines its business in five main operating areas (North America, Atlantic Europe, Continental Europe, Mexico and China). Contrary to a functional strategic structure, BT does not separate its activities within each region, which gives it a wide know-how plan.
