A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture.
The Embraer was created in1969 by military government have several strengths, one of them is their strategic place. It was located in San Jose dos Campos in Sao Paulo or was called “Technology Valley” which consist of industrial cluster in aerospace telecommunication, auto mobile and petroleum sector was giving the Embraer’s distinctive competencies areas of R&D, design, product development, system integration, assembly and technical assistance in aircraft manufacturing.
Besides that, advantage in having smaller jet and less costly by introduced 35-seat ERJ 135 and %0-seat ERJ 145 meet increasing demand for jets that replace turboprop model. They production structure also is one of the strength. Its network consist three levels that which is risk partners or strategic partners at the first level that carry most of innovation and risk and operate based on long term contract. Second level is international supplier and the third level is national subcontracts.
For the weakness part is Embraer was to depending on international supplier, low local content of its products and relied on external consultant as well. Embraer was facing problem in the creation of knowledge and specialized supplier. 95% (by volume) of their equipment, material and components are purchased on the international market. There only 40% Brazilian content in each airplane. They was lack of an market intelligence unit make they to relied on the external consultant to doing their market studies of the commercial aircraft study till their have their own in 1998 which is 29 years later.
They also having a lot of opportunities from their strategic alliance, joint venture and support by Brazilian state bank Banco Nacional de Desenvolvimento Economico e Social (BNDES). Embraer was