Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Length: 15 pages
Data source: Published sources
Abstract
The case follows the rapid rise of one of Brazil’s leading companies, Embraer. By 2013 it was the third largest commercial aircraft manufacturer in the world. The case describes the challenges that Embraer faced in 1994 that led to its privatisation. It also highlights the key strategic choices that top management made subsequently to help the company achieve sustained profitable growth over two decades. Embraer diversified from its initial base as a defence contractor in Brazil to become a leading manufacturer of civilian regional jets for international markets. It then moved into business jets. By 2013 Embraer was a respected name in the international commercial aircraft industry. However, there were mounting challenges for the company. The case describes the slowdown in the Chinese market for business jets, growing competition from China and Russia in regional jets, ambitious growth plans of its traditional rival Bombardier, and the move by industry giants Boeing and Airbus to offer competing alternatives to Embraer's regional jets. How should Embraer navigate the stormy weather ahead is the problem posed by the case.
About
Abstract
The case follows the rapid rise of one of Brazil’s leading companies, Embraer. By 2013 it was the third largest commercial aircraft manufacturer in the world. The case describes the challenges that Embraer faced in 1994 that led to its privatisation. It also highlights the key strategic choices that top management made subsequently to help the company achieve sustained profitable growth over two decades. Embraer diversified from its initial base as a defence contractor in Brazil to become a leading manufacturer of civilian regional jets for international markets. It then moved into business jets. By 2013 Embraer was a respected name in the international commercial aircraft industry. However, there were mounting challenges for the company. The case describes the slowdown in the Chinese market for business jets, growing competition from China and Russia in regional jets, ambitious growth plans of its traditional rival Bombardier, and the move by industry giants Boeing and Airbus to offer competing alternatives to Embraer's regional jets. How should Embraer navigate the stormy weather ahead is the problem posed by the case.