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Portugal has a stable political system and a pro-business government, as exemplified by its consistent improvement in the World Bank's Ease of Doing Business ranking, making the region conducive to foreign investment (World Bank, 2021).  In addition, Portugal is well-known for its strong relationships with European Union (EU) nations, which makes it a strategic location for Bombardier to access the EU market, as Prazeres (2018) also notes.
In addition, as a member of the EU, the country has access to funds for infrastructure development and investment incentives (Santos, 2020).
For instance, the government's Industry 4.0 initiative seeks to promote the modernization and digitalization of industries, which aligns with Bombardier's emphasis on incorporating advanced technology into its products (PwC, 2018).
The legal and regulatory environment is a crucial component of the macroenvironment analysis. In this regard, Portugal provides foreign investors with an accessible and transparent legal framework (Pereira et al., 2020)
The Portuguese government has prioritized the growth and development of the aviation sector, as evidenced by the Aerospace Strategy 2030 (Santos & Simes, 2018)
In terms of market trends, Porter's Five Forces model (Porter, 2008)
However, the emergence of potential disruptors, such as new technologies and business models in the transportation sector (e.g. ride-hailing and electric vehicles), can pose indirect threats to Bombardier's market growth (KPMG, 2019)
Recent reports indicate that these companies have formed strategic alliances with Portuguese firms in order to expand their presence in the country (Tavares et al., 2020).

Building high-quality aerospace and transportation products requires significant manufacturing and engineering skills, according to Bombardier (Miclea, 2017).

. The dynamic capabilities framework, according to Teece (2014), implies that businesses should constantly adjust and reorganize their resources and skills in response to shifting market conditions.

Engaging in cooperative ventures with local partners might help to solve these issues by facilitating knowledge transfer and utilizing local skills (Lu & Beamish, 2006).

Bombardier can also take use of Portugal's unrealized potential by investing in capacity building and the creation of a competent workforce there (Olson & Stone, 2020).

Bombardier's internationalization goal in Portugal is to deliver a differentiated and integrated aerospace and transportation portfolio (Thomas, 2019).

These features distinguish the firm from its competitors. Kaplan and Norton (2016)

 Porter’s (1985) generic strategies – cost leadership, differentiation, and focus – provide a useful framework to guide the company’s strategic choices. Bombardier has consistently pursued differentiation as its primary strategy on a global scale, capitalising on its innovative capabilities and strong brand reputation (Thomas, 2019)

Furthermore, combining the differentiation strategy with a focus strategy, targeting specific market segments or niches, can enhance Bombardier’s competitiveness in Portugal (Porter, 1985)

According to Zeithaml et al. (1996), one of the most important factors in differentiating a business from its competitors is providing exceptional customer service.

This can be accomplished by Bombardier by putting into practice service quality models such as SERVQUAL (Parasuraman et al., 1988) in order to monitor customer feedback, rectify identified service gaps, and constantly enhance client-facing operations. In addition, the company is able to capitalize on the local knowledge and capabilities available to it by forming strategic alliances with local suppliers, educational institutions, or research institutes (Rugman and Verbeke, 2001)

According to Johnson et al. (2017), this would lead to an increase in market share as well as an improvement in the overall performance of the organization.

According to Prahalad and Hamel (1990), if Bombardier is able to successfully integrate its business-level strategies into its overall corporate-level strategy, the firm will be able to ensure that its development into Portugal is in line with the company's vision and objectives, which would pave the way for the company's long-term growth and success.

Porter’s diamond model (Porter, 1990), and the international value chain (Porter, 1985).

A transnational strategy allows Bombardier to integrate its operations worldwide while adapting its products to specific market demands (Teece, 2014) concurrently. A multidomestic strategy enables the firm to customize its offerings to cater to local preferences and regulatory requirements (Hill and Hult, 2016), enhancing Bombardier’s competitiveness and market shares in Portugal.

In this context, the firm should capitalize on local partnerships and knowledge transfer to strengthen its position in Portugal’s aerospace industry (Rugman and Doh, 2008).

By engaging local suppliers, tapping into skilled labor forces, and investing in the development of new products and services, Bombardier can create additional value for its customers and generate competitive advantage (Pisano and Shih, 2012).

Root (1994) asserts that a proper choice of entry mode can significantly mitigate entry barriers and optimise the opportunities in the target market.

While joint ventures, franchising, and partnerships are popular entry modes in international business (Hill, Hwang, and Kim 1990; Doole and Lowe 2012), the choice of entry mode for Bombardier in Portugal should be based on the firm’s unique competencies, resources, and the industry requirements in Portugal. According to Prahalad and Hamel (1990), the core competence of Bombardier lies in its technical expertise and innovative capabilities in aerospace and transportation product development. This expertise can be further leveraged through a wholly owned subsidiary (WOS) entry mode, allowing Bombardier to maintain control over its resources and technology while expanding its operations in Portugal (Sharma and Erramilli 2004).
Furthermore, under the EU rules and regulations, Bombardier can enjoy various trade benefits and patent protection rights that can facilitate the company’s expansion in Portugal (Stoetzer and Wulfert 2018).
The chosen WOS entry mode will also allow Bombardier to gain a competitive advantage over existing local and global competitors (Peng, Wang, and Jiang 2008)

According to Yip (2018), companies expanding into foreign markets often face adaptation hurdles, especially in terms of cultural, political, and regulatory differences.

One potential challenge for Bombardier is understanding and adapting to Portugal’s unique cultural context. Hofstede (2001) highlights the importance of cultural awareness and sensitivity for successful international business operations. Bombardier may need to invest in understanding the local business practices, customer preferences, and communication styles to forge strong relationships with stakeholders and avoid conflicts (Steers, Sanchez-Runde, and Nardon 2012).
 To mitigate these risks, Bombardier should adopt a comprehensive risk management strategy, including monitoring the economic and geopolitical landscape, scenario planning and adopting hedging strategies to safeguard its financial position (Miller, 1992)

According to Luo (2001), a well-crafted risk mitigation plan enables firms to minimise the impact of unpredicted events or negative trends while enhancing their prospects of success in foreign markets.

To mitigate macroeconomic risks, Bombardier should adopt a portfolio of risk management practices (Jorion 2007).