EMBRAER Case Study: Producing Aircraft for the World in Brazil 
ISB PGPMAX Brazil Term
Embraer: in Search of Sustainable
Competitiveness
Prof. Carlos Arruda; Prof. Georges Blanc; Profa. Erika Barcellos
Revised Version January 2011
PRODUCING AIRCRAFT FOR THE WORLD IN BRAZIL
EMBRAER: IN SEARCH OF SUSTAINABLE COMPETITIVENESS
2
PRODUCING AIRCRAFT FOR THE WORLD IN BRAZIL
EMBRAER: IN SEARCH OF SUSTAINABLE COMPETITIVENESS
“Some years ago our competitors used to say: How dare these “ugly ducklings” from South
America try to sell an aircraft in the Northern Hemisphere? Fortunately, they underestimated us.”
Satoshi Yokota, Vice-President of Engineering and Development of Embraer
“Embraer is a company that is trim, aware and competitive.”
Michael Boyd, chairman of the Boyd Group, consultancy company in aviation
The Chinese, the Russians and the Japanese are developing aircraft. They are countries that are trying to develop their own aircraft industry and that will obtain slices of the market, especially in their own countries.”
Mauro Kern, executive vice-president of Embraer
In June 2008, Embraer had climbed to third position among the world manufacturers of commercial aircraft. With a backlog of orders of up to four years for some of its commercial and executive jets and growing domination in the sector of commercial aircraft of 70 to 120 seats, the company had overtaken the Canadian Bombardier, occupying a position nearer
Airbus and Boeing, the two largest manufacturers of commercial aircraft in the world. In spite of this success in the business, the value of its shares continued low (Annex 1).
With head office in São José dos Campos, around 100 km from São Paulo, Embraer possessed five factories in three municipalities of the state of São Paulo. Abroad, it was present through subsidiaries, offices, technical assistance and parts distribution centres, located in Australia, China, Singapore, the United States and France. In factory terms, it operated in Europe with a maintenance and repair
Embraer: in Search of Sustainable
Competitiveness
Prof. Carlos Arruda; Prof. Georges Blanc; Profa. Erika Barcellos
Revised Version January 2011
PRODUCING AIRCRAFT FOR THE WORLD IN BRAZIL
EMBRAER: IN SEARCH OF SUSTAINABLE COMPETITIVENESS
2
PRODUCING AIRCRAFT FOR THE WORLD IN BRAZIL
EMBRAER: IN SEARCH OF SUSTAINABLE COMPETITIVENESS
“Some years ago our competitors used to say: How dare these “ugly ducklings” from South
America try to sell an aircraft in the Northern Hemisphere? Fortunately, they underestimated us.”
Satoshi Yokota, Vice-President of Engineering and Development of Embraer
“Embraer is a company that is trim, aware and competitive.”
Michael Boyd, chairman of the Boyd Group, consultancy company in aviation
The Chinese, the Russians and the Japanese are developing aircraft. They are countries that are trying to develop their own aircraft industry and that will obtain slices of the market, especially in their own countries.”
Mauro Kern, executive vice-president of Embraer
In June 2008, Embraer had climbed to third position among the world manufacturers of commercial aircraft. With a backlog of orders of up to four years for some of its commercial and executive jets and growing domination in the sector of commercial aircraft of 70 to 120 seats, the company had overtaken the Canadian Bombardier, occupying a position nearer
Airbus and Boeing, the two largest manufacturers of commercial aircraft in the world. In spite of this success in the business, the value of its shares continued low (Annex 1).
With head office in São José dos Campos, around 100 km from São Paulo, Embraer possessed five factories in three municipalities of the state of São Paulo. Abroad, it was present through subsidiaries, offices, technical assistance and parts distribution centres, located in Australia, China, Singapore, the United States and France. In factory terms, it operated in Europe with a maintenance and repair