Embraer: The Global Leader in Regional Jets
Home Country Features
Below are some of the competitive advantages (or factors which led to competitive advantages) I identified in the case:
- History of the company; founded and supported by the Brazilian government. Also, probably a well-known brand in the Brazilian market - given its market presence in both the military and commercial spaces, and its neighboring markets. The three aviation business units (passenger, defense and special purpose aircrafts) the company entered must also led to, in one or another way, synergies and value-added know-how across businesses.
- Privatization and human capital; the shift in ownership and human capital, change of organization structure and strong and "willing" investors were key factors of the success. Without the empowerment which followed by the shift in ownership and the change to "clock-builders", ready to take moderate risks, from "time-tellers" the company would not have been able to capitalize on the huge market opportunities.
- Brand nationality; Brazil, the largest country and economy in South America, definitively helped the company to move in to Uruguay and Chile.
- Home market; had a huge and pivotal role in the company's success. Not only was the market large enough (both in terms of land and population) to support and serve as a launching pad (in terms of both economics and customer preferences/diversity), but also increasingly demanding for new products.
- Product features; without superior cost advantages and meeting consumer (airline) demands/preferences e.g. Brasilia, the company would not have been able to enter other markets such as the US. Customer f ...