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Embraer Case

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  • April 30, 2013
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The Embraer E-Jet family is a series of narrow-body medium-range twin-engine jet airliners produced by Brazilian aerospace conglomerate Embraer. Announced at the Paris Air Show in 1999, and entering production in 2002, the aircraft series has been a commercial success. The aircraft is used by both mainline and regional airlines around the world. Inspired by Santos-Dumont, Embraer is one of the world’s leading aircraft manufacturers, a position achieved through the commitment to full customer satisfaction. Throughout its 40-year history, Embraer has been involved in all aspects of aviation. In Addition to design, development, manufacturing, sales and technical support for commercial, agricultural and executive aviation, Embraer also offers integrated solutions for defense and security.  It has produced more than 5,000 aircraft that operate in 80 countries on five continents, and it is the market leader for commercial jets with up to 120 seats. Embraer manufactures some of the best executive jets in operation, and is now entering a new level in the defense segment.

Five Forces

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...