Embraer: The Global Leader in Regional Jets Country of Origin Characteristics Below are some of the competitive advantages (or factors that led to competitive advantages) that I identified in the case :- History of the company; founded and supported by the Brazilian government. Furthermore, it is probably a well-known brand in the Brazilian market, given its market presence in both the military and commercial sectors, and in neighboring markets. The three aviation business units (passenger aircraft, defense and special purpose) that the company has entered must also bring, in one way or another, value-added synergies and know-how between the companies. - Privatization and human capital; shifting ownership and human capital, changing organizational structure, and strong, “willing” investors were key success factors. Without the empowerment resulting from the change of ownership and the transition from "time counters" to "watch makers", ready to take moderate risks, the company would not have been able to exploit the enormous market opportunities.- Nationality of brand ; Brazil, the largest country and economy in South America, definitely helped the company move to Uruguay and Chile. - Domestic market; has played a huge and critical role in the company's success. Not only was the market large enough (both in terms of territory and population) to support and serve as a springboard (in terms of both economics and customer preferences/diversity), but also increasingly demanding for new products. Product features; without superior cost advantages and without meeting consumer demands/preferences (airlines), for example Brasilia, the company would not have been able to enter other markets such as the United States. Customer focus has become the cornerstone of the company's strategy, such as design and "robustness". Stay away from the most profitable market, such as the larger carrier market dominated by Boeing and Airbus. - Political and regulatory market factors; worked in favor of the company. Without strong support, a protected domestic market and subsidies (including in the form of favorable taxes) from the Brazilian government, the company would have faced strong competition and might not have survived in the early years and certainly would not have gained a good head start . as he did. Supplier country characteristics The company immediately addressed several key areas: - Workforce and productivity; the company drastically cut both its workforce and salaries (indirectly by slowly replacing seniors in the organization with younger people). Although this dramatic event would have created enormous tensions elsewhere, it actually had the opposite effect as the remaining workforce felt much more energized (partly thanks to the new incentive system and bottom-up approach).).
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