Embraer: Global Strategy

The Aircraft Production Industry Challenges (1/2) • Technological – Weight & Volume Restrictions – Balance state-of-the-art tech with cost restrictions • Regulatory – Separate certification from each importing country © 2007, Jesse Kedy

The Aircraft Production Industry Challenges (2/2) • Strategic – Long time-to-market (need near flawless planning) – Global flexibility (variations in the airline industry) • Competitive (Governmental Support) – Other National Champions (key employers) – Able to compete on price (regardless of efficiency) © 2007, Jesse Kedy

Embraer: Core Competencies (1/2) Truly Global Truly Innovative • 95% International Sales • Forecasted Demand • Global Operations • Double Bubble Design Truly Efficient Underdog Tenacity • Wages • Ugly Duckling • China Facility • Entrepreneurialism • Common Platforms • Underestimated © 2007, Jesse Kedy

Embraer: Global Strategy 2 Dimensions Business Drivers Corporate Culture (Hard Strategy) (Soft Strategy) 1. Growth (Capital) 1. Local Compliance 2. Operations (New Market 2. Customer Focus Presence) 3. Transparency 3. Strategic Markets 4. Recognition (Executive Aviation) 5. Result Sharing 4. Partnerships 6. Social Responsibility © 2007, Jesse Kedy

Industry Competitiveness Aircraft Manufacturing (2/5) Global Integration •Not Very Responsive •Somewhat Innovative •Highly globally integrated Product Local Innovation Responsiveness © 2007, Jesse Kedy

Industry Competitiveness Aircraft Manufacturing (3/5) Global Integration •Not Very Responsive •Slightly Innovative •Somewhat Globally Integrated Product Local Innovation Responsiveness © 2007, Jesse Kedy

Industry Competitiveness Aircraft Manufacturing (4/5) Global Integration •Most Responsive •Most Innovative •Working towards Global Integration Product Local Innovation Responsiveness © 2007, Jesse Kedy

Embraer: Global Strategy

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