Embraer: Shaking up the aircraft manufacturing market.
Embraer is the world’s leading regional aircraft manufacturer. Since 1994, Embraer has successfully introduced 7 commercial jet models in the market. Within past decade the demand for the small scale aircrafts has been rapidly increased in the world aircraft market. This has created high opportunities for Embraer. According to Embraer’s official website, their mission is: “It is Embraer’s business to generate value for its shareholders, by fully satisfying its customers in the global aeronautics market. Generating value is understood to be the maximization of the company’s value and the guarantee of its perpetuity, with integrity of conduct and social and environmental awareness. The company concentrates on three business areas and markets: the airline market, executive jets and defence and security.” We analyse the mission statement with given models from the lecture slides. First the elements of mission were analysed. We trust that the company’s beliefs, values and business are described by the mission statement and altogether the mission provides the idea of the purpose of Embraer. Considering functions of the mission it can be seen that the mission of Embraer provides direction, legitimization and motivation. To analyse the internal environment of Embraer, we considered the resourses, capabilities and core competencies and used VRINE test on Embraer’s 70 – 120 seats jet model to find the competitive advantage. According to the given case Embraer has high skilled work force, strong brand name, focus on market requirements and innovative product line, which creates high competitive advantage for them. To analyse the external environment such as industry and competition with its competitors in the industry we used Porters five force model. It is revealed that rivalry is very high within the industry and buyer and supplier power is also very high. According to the market share analysis from 1995 to 2004 it...
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