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Embraer

No description
by

Victoria Kyslytsia

on 27 October 2013

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Transcript of Embraer

Establishment
1969
Downturn
1990s
Privatization
1994
2013
Background
3rd largest producer
SWOT
STRENGTHS
- Strong brand image
- Loyal customers
- Risk sharing
- R&D
- Product development
- System integration
- Assembly
- Well managed supply chain
- Cost advantage
- Technical assistance in
aircraft manufacturing
WEAKNESSES
- Dependent on international suppliers
- Lack of government support
- Narrow product line
- No formal relationship with universities in US and Europe
OPPORTUNITIES
- Emerging markets
- Focus on sustainability
- Enter into 145+ passenger segment
- Increase sales volume of military aircraft
- Own corporate university

THREATS
- Downturn in world economy (GFC)
- New entrants
- Government support of local aircraft
producers

Presented by

Global business

Future
recommendations
- Focus on marketing and customer support to remain competitive and protect market shares.
- Looking at growing GDP in the developing countries, the company should focus on passenger aircraft.

Thank you for your attention!
Product range
Revenue per region
Revenue per segment
http://www.embraer.com
corporate aircraft
commercial aircraft
military aircraft
Rivalry
- Fast industry growth rate
- Close competition for market share

Substitutes
L
Threat of new entants
L
Bargaining power of Customers
M
Bargaining power of suppliers
M/H
agriculture aircraft

Artur Kuvandykov and Viktoriia Kyslytsia

H
- High capital requirement
- High sunk costs
- Strong brand image is important
- Advanced technology required

- Importance of particular product
- Powerful Buyers
- Low cost of switching suppliers
- Dependance on international suppliers
- Substantial product differentiation
- Substitute has lower performence

Key factors and “smart moves” of the company toward its success:

1. Embraer was founded and initially supported by the Brazilian government.
2. Human resource strategies (people were motivated to work).
3. Company reduced the cost of capital by sharing risks (initially with the government and later with suppliers).
4. Focusing not only on the domestic markets, but also on foreign.
5. R&D and market demand focus.


Conclusion
In order to build competitive advantages the company must focus on R&D to improve existing products
(develop bio fuel and new type of engines.)

Sustainable development provides cost effectiveness, build on current brand image and reputation
Full transcript