Embraer SWOT Analysis
Here is detailed SWOT analysis of Embraer which has been operating in aerospace industry since 1969.
Embraer is a well-known Brazilian aircraft manufacturer company that designs and manufactures aircraft and sells them to commercial, defense and security markets. The company basically sells defense aircraft to Brazilian air force and to other armed forces like Europe, Asia and Latin America. The Embraer Company is also known to provide aviation services such as aircraft maintenance, training and spare parts etc.
Following is an in-depth SWOT profile of Embraer in order to present a clear and unbiased view of the company’s strengths, weaknesses and the prospective opportunities and threats in the future.
• Strong brand image; the company sells civil and military aircrafts to all across the world.
• The company has built a strong brand positioning by establishing plants and maintenance centers in China, Portugal, France and the United States.
• Strong sales growth for corporate jets.
• Well-built financial growth.
• The supply chain network gives the company a competitive edge.
• Highly skilled employees.
• The company has evolved itself in the market through its supply chain innovation which has reduced R & D costs and all the complexities involved in the production process and therefore produce the finest quality of products.
• The company lacks in the formation of knowledge and specialized suppliers.
• It doesn’t have the targeted government program to focus on R & D in order to bring the small tech suppliers in the aerospace industry.
• Embraer ‘s relationships with the universities is also quite weak as compared to the well controlled ties which is observed between the companies and the university based R&D centers in the US and Europe.
• Weak innovation structure.
• Low risk management.
• The company has now lost its market presence due to tough competition.
• Needs to create further extension of products.
• Entering into emerging markets by expansion.
• Mergers or acquisitions.
• New innovative strategies.
• Attract new markets to increase customer loyalty.
• Needs to work further on cost-design approach.
• Changes in the regional jets in the next five years can boost sales growth.
• The company has to upgrade its international operations.
• Fluctuations in the exchange rates can be a major threat to the company.
• As the Technology is rapidly growing, the company has to allocate its resources accordingly.
• Market competition.
• Decline in sales.
• Mergers and Joint venture can help at the time of economic crisis.
• Since September 11, 2001 the demand in the airline industry has remained unstable or deteriorating, in such a situation it’s difficult for the company to remain profitable and grow.
• New market entrants.
• Experiencing many challenges ahead such as many orders have been cancelled or downsized and the company is constantly facing a 10% decline since 2010.