EMBRAER moves Up & Out of Markets

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Embraerembraer

Embraer is a dynamic global, but Brazilian-based, aerospace company. It has units in 6 countries and 18 cities as part of its strategy to serve customers and to balance their manufacturing capacities. Here is the coverage of its geographic presence.

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The company recent history shows its ability to respond appropriately to customer demands. This success story started by creating turboprop aircraft for the commuter markets, then upped its commitment to this segment with regional jets and transferred its expertise to the business aviation segment.

The two below stories demonstrated that corporate dexterity.

Several years ago, the corporation saw a growing market in the People’s Republic of China. Its then burgeoning economy heralded both increased traffic within the vast country—necessitating a system of RJ flights and the accumulation of wealth to the level at which executives would require the convenience of the Legacy 650.

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Respecting the drive of the Chinese to upgrade its aeronautical competence, the Sao Jose dos Campos team selected Aviation Industry Corp. of China subsidiaries Harbin Aviation Industry (Group) Co. and Harbin Hafei Aviation Industry Co. to participate in a venture located in Harbin. They constructed a plant there and began to produce the Legacy and ERJ 145.

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After 166 airplanes rolled out of this facility, the Chinese economy and the PRC’s tax policies (made the importation of new planes cheaper than domestically built birds) made the Harbin venture not as attractive.

Embraer and its partners closed down the manufacturing there, but will retain a presence in China.

The second story is about a newly branded Legacy business plane called the Kyoto Airship. The luxury plane is still in the design stages, but is planned to include:

  • floor-to-ceiling windows and sunroofs,
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Kyoto is the name of a city in Japan’s Kansai prefecture and once was the Western capital of that kingdom, at that time. Curiously, it was also the site for the signing of the Kyoto Protocol, a landmark international agreement which established very demanding environmental goals, including aviation.

  • master bedroom featuring a queen bed,

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  • an ensuite two-person walk-in shower,

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  • lounge area with white leather sofas and luxury wool carpets (in a pattern of their choice),
  • widescreen TVs and Blu-ray players throughout,
  • WiFi as standard,
  • a fully fitted kitchen.

Price: $55 million

The ability to continuously examine a corporation’s strategic presence and to design innovative products is critical for long-term success. Embraer is executing those strategies effectively. Getting out of China and moving up in the Business segment show that ability to move sagaciously.

 

ARTICLE: Embraer Shuts Down China Factory as Private-Jet Orders Run Out

ARTICLE: The planes of the future come with floor-to-ceiling windows and sunroofs

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