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Operating Strategies Case Study
Case Title:
Embraer – Flying High Through Segmentation
Publication Year : 2006
Authors: Siddhartha Paul, Abhijit Sinha
Industry: Commercial Aircraft manufacturing
Region: US Europe
Case Code: OPS0018K
Teaching Note: Not Available
Structured Assignment: Not Available
OR
Abstract:
Embraer, the third largest aircraft manufacturer in the world focused on the niche market segments. The company focused on regional jets with high growth potential in commercial, defense and executive aviation. The regional jets accounted for 40 percent of the commercial aircraft in the US and Europe. Embraer expected that there would be a market of US$170 billion for 7800 new jet deliveries worldwide by 2024 and so the company wanted to grab the major share of the expected revenue. The case gives an insight into Embraer’s history with a brief overview of the global aviation market and Embraer’s outlook.
Pedagogical Objectives:
- To understand the global aircraft manufacturing industry
- To understand the evolution of regional aircrafts
- To discuss competitive dynamics of global aviation industry
- To analyse the competitive advantages of the regional jets
- To analyse Embraer’s ability to sustain profitability in the long run.
Keywords : Embraer; Bombardier; Boeing; Airbus; Regional jets; Segmentation; Operating Strategies Case Study; Aviation; Embraer Regional Jet (ERJ); Airliners; Commercial jets; Point to point traffic; Hub and spoke; Strategy; Aircraft manufacturer; Marketing
