-
Essay / Embraer: The Global Leader in Regional Jets - 1241
Embraer: The Global Leader in Regional JetsHome Country CharacteristicsBelow are some of the competitive advantages (or factors that led to competitive advantages) that I identified in the case: - History of the company; founded and supported by the Brazilian government. It is probably also a well-known brand in the Brazilian market, given its presence in the market, both military and commercial, as well as in neighboring markets. The three aviation business units (passenger, defense and special purpose aircraft) that the company has entered must also lead, in one way or another, to synergies and know-how to added value between companies. - Privatization and human capital; the change of ownership and human capital, the change of organizational structure and strong and “willing” investors were key factors of success. Without the empowerment that followed the change in ownership and the shift from "time makers" to "clock builders", willing to take moderate risks, the company would not have been able to capitalize on the huge market opportunities. - Nationality of the brand; Brazil, the largest country and economy in South America, has definitely helped the company establish itself in Uruguay and Chile.- Domestic market; played an essential and crucial role in the success of the company. Not only was the market large enough (both in terms of territory and population) to support and serve as a launch pad (in terms of economics and customer preferences/diversity), but it was also increasingly demanding when it comes to new products. - Product characteristics; Without higher cost advantages and meeting consumer (airline) demands/preferences, for example in Brasilia, the company would not have been able to enter other markets such as the United States. Customer orientation has become a cornerstone of the company's strategy, for example in terms of design and “robustness”. Stayed away from the more profitable market, for example the large carrier market dominated by Boeing and Airbus. - Political and regulatory factors of the market; worked in favor of the company. Without strong support, a protected domestic market and subsidies (also in the form of favorable taxes) from the Brazilian government, the company would have faced fierce competition and might not have survived in the first years and definitely wouldn't have gotten a good head start. as it did.Supplier Country CharacteristicsThere were several key areas that the company immediately addressed: - Labor and productivity; the company significantly reduced its workforce and salaries (indirectly by slowly replacing the organization's senior executives with younger people). Although this dramatic event would create enormous tensions elsewhere, it actually had the opposite effect as the remaining workforce felt much more energized (in part due to the new incentive system and bottom-up approach).).