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Embraer's Future Strategy

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Submitted By Shahad1019
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An analysis will be conducted to suggest a strategic plan that Embraer would pursue over the next three to five years. The analysis will identify the competitive positions that Embraer has in the aircraft industry as well as identify the three major rivals listing their strengths and weaknesses. The analysis will also include the successful strategies that Embraer used to compete against its more established rivals. The analysis will be of assistance in understanding the reasoning for the suggested strategy. Following an approval of the strategy, a detailed strategy plan will be provided to you by the assigned deadline.

Analysis:
Using Porter’s diamond of national competitiveness to provide a convenient way to analyze the potential reasons for Embraer’s success, we verified that human resources and people with education and knowledge are factor conditions of the diamond. Most of the hired engineers have been students in the Aeronautical Technological Institute (ITA). The government Aviation schools provided a great overall national competitive advantage. As for the supportive institutional framework, the government had a roll in funding Embraer in its early days. As well, Aeronautical Technology Center (CTA) and Aeronautical Technological Institute (ITA) created a supreme opportunity for the company. Embraer took advantage of the untapped demand for regional airlines; and this covers the demand factors of the diamond. As for the local competitive intensity, Embraer did not face national competitiveness due to the level of involvement of the government. However, internationally, the three major rivals in the aircraft industry are Bombardier, Boeing, and Airbus.
Bombardier:
• Weakness: Credit rating is junk status.
• Strengths: Great support from the Canadian government to replace the thousands of jobs that had been lost. In exchange, the CSeries manufacturing

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