Intensity of Rivalry low
Large businesses have certain inherent advantages over smaller companies. They are usually more established and have greater amounts of funds and resources. Embraer also has more established customers. Hence, they can enjoy more repeat business, which produces higher sales and profit. Another plus is that Embraer's fast industry growth rate makes it less likely for competitors to feel the need to compete. Since most modern aircraft were incredibly complex, a worldwide network of approximately 400 subcontractors was required to supply major structures and subassemblies, such as wings and fuselages, to manufacturers, in turn, were supplied yup to 4,000 firms that manufactured components or raw materials. This makes the intensity of rivalry low because there isn't a need to compete when there is not a lot of competition.
Threat of Substitutes-low... [continues]
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