Embraer: Global Strategy

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This is an evaluation of Embraer's global strategies and structure, written from an international business strategy standpoint. The presentation is meant to supplement a written analysis (available at www.scribd.com/jessekedy)

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Embraer: Global Strategy

  1. 1. © 2007, Jesse Kedy
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. Embraer: Core Competencies (1/2) Truly Truly Global Innovative Truly Truly Efficient Tenacious © 2007, Jesse Kedy
  6. 6. 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
  7. 7. Industry Competitiveness Aircraft Manufacturing (1/5) Global Integration •Not Very Responsive •Least Innovative •Most Globally Integrated Product Local Innovation Responsiveness © 2007, Jesse Kedy
  8. 8. Industry Competitiveness Aircraft Manufacturing (2/5) Global Integration •Not Very Responsive •Somewhat Innovative •Highly globally integrated Product Local Innovation Responsiveness © 2007, Jesse Kedy
  9. 9. Industry Competitiveness Aircraft Manufacturing (3/5) Global Integration •Not Very Responsive •Slightly Innovative •Somewhat Globally Integrated Product Local Innovation Responsiveness © 2007, Jesse Kedy
  10. 10. Industry Competitiveness Aircraft Manufacturing (4/5) Global Integration •Most Responsive •Most Innovative •Working towards Global Integration Product Local Innovation Responsiveness © 2007, Jesse Kedy
  11. 11. Industry Competitiveness Aircraft Manufacturing (5/5) Global Integration Product Local Innovation Responsiveness © 2007, Jesse Kedy
  12. 12. Embraer Customers (170/190 model) © 2007, Jesse Kedy

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