Embraer: Flying Further and Faster into the Future

EmbraerA corporate strategy article by Thunderbird students Mitch Epstein, Chad Bonfiglio, Trudy Sharp, Edgar Khachatryan and Alyssa Watt

Embraer, a Brazilian aircraft manufacturing company, flew into a lead role in the regional jet industry. With a tagline of “For the Journey,” Embraer faces significant pressure and competition.  In order to maintain and extend its lead in the industry, Embraer will have to build on its unique history and push harder and deeper into strategic relationships and innovations.

National Champion

Embraer’s unique relationship with the Brazilian government has positioned the company well to continue pursuing its lead in the regional aircraft market.  When the Brazilian government was looking for a national champion in the late 1960s, in the airplane manufacturing sector, it created its own “mixed enterprise.”  Created in 1969 as a joint venture, shareholders and the Brazilian government formed Empresa Brasileira de Aeronáutica, better known as EMBRAER.

The ABC’s of Aviation: Airbus, Boeing, China

COMACA corporate strategy article by Thunderbird students Brett Davis, Don Dennis, Tras Obsuwan, Kyungwhan Park and Ryan Wegner

How comfortable would you feel if you boarded an aircraft that was entirely developed, manufactured, and assembled in China by a wholly-owned Chinese company?  That reality may occur in the near future. With global industry revenue projected to increase to $4 trillion by 2029[i], of which approximately 12% [ii] is expected to occur in the Chinese market, new competitors are quickly strengthening their positions in the historically duopolistic airline industry. Amongst these players is Commercial Aircraft Corporation of China (COMAC), a Chinese state-owned aircraft manufacturing company, which is focused on fiercely competing with industry leaders Boeing and Airbus. COMAC’s aspirations are to obtain market share and at the behest of the Chinese government reduce the country’s reliance on foreign airline manufacturers.

Embraer: The Future of Flying

Embraer global strategyBy Aarohan Singh, Abhijit Chakrabarti, Alok Shah, Divy Jaisingh, Karn Dhandhania and Rishin Patel

The first credit for human flight in history is given to the Wright brothers, who took their first flight in 1903. However, for commercial air travel, that honor is given to the British Overseas Aircraft Corporation, which in 1952, provided the world’s first commercial jet service. Within commercial jets, there has been a constant innovation taking place throughout the industry. Whether aspiring to create faster, safer, or more luxurious planes, this highly competitive industry is always looking for the next big thing.

Everyone has a lot to thank for the advent of flying.  We can be in California at one moment, board a plane, have a drink, take a nap, and end up in Arizona at the next. But what price do we pay for this? The luxurious Boeing jets, which on Dec. 13 raised airline prices by 5.2 percent, are generally fast, quiet, and comfortable to fly in. However, with a lack of options prior to the advent of regional jets, passengers were forced to board commercial airliners, known as larger gas guzzling aircrafts.  In fact, these inefficient airliners also contribute enormously to air pollution that leads directly to negative environmental impacts.

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