Brazil Embraer: State-Owned Enterprise to Global Leader Essay

1. SWOT ANALYSIS Strength * Cost advantage * High R&D * Innovation * Aircraft manufacturing * Strong brand equity * Strong financial position * Supply chain * Design if aircraft * Product development * Technical assistance * System integration| Weaknesses * Lacks importance of dependency on international suppliers * Minimal Research and development to aerospace industry * Risk management * Lack of local resources * Privatization were transforming the Brazilian economy * Low content of its production| Opportunities * Emerging markets and expansion abroad * Creating formal relationships with universities to build university based R&D centers in U.S. * Online marketing * developing markers * Set operations in brazil to increase local outsourcing| Threats * Competition of Bombardier * Cheaper technology * Exchange rate fluctuations * Price wars * WTO sanctions * Lack of internal market intelligence units| 2. Brazil Embraer entered the regional jet business by moving up from turboprops and then entered the business jet after achieving success in the regional airline business.Brazilians build jets the world wants to buy. They are selling around the world in a market where a host of would-be US and European competitors have died a lingering death. Both Bombardier and Embraer have been assisted by government export subsidies (procurement and fiscal support).Key factor that made Embraer successful is the location of aircraft in Brazil â€Å"technology Valley â€Å" is where industrial clusters and petroleum sectors execute the assembling of smaller jets . Embraer sells civil and military aircraft and has established plants, sales, and maintenance centers in countries like China, Singapore, and the United States. Embraer used international strategic alliances to gain expertise in aircraft manufacture, and its aggressive marketing of its new regional jets to various airlines. Embraers success in production of military and commercial allowed it to master them in manufacturing regional jets.