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Transcript of Embraer
3rd largest producer
- Strong brand image
- Loyal customers
- Risk sharing
- Product development
- System integration
- Well managed supply chain
- Cost advantage
- Technical assistance in
- Dependent on international suppliers
- Lack of government support
- Narrow product line
- No formal relationship with universities in US and Europe
- Emerging markets
- Focus on sustainability
- Enter into 145+ passenger segment
- Increase sales volume of military aircraft
- Own corporate university
- Downturn in world economy (GFC)
- New entrants
- Government support of local aircraft
- 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!
Revenue per region
Revenue per segment
- Fast industry growth rate
- Close competition for market share
Threat of new entants
Bargaining power of Customers
Bargaining power of suppliers
Artur Kuvandykov and Viktoriia Kyslytsia
- 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.
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