The Emergence of a Global Aircraft Manufacturing Brand

1452 Words6 Pages
In the article which I have chosen, the author discusses one of Latin American’s most successful business stories in the last 20 years. This success comes despite the fact that the company is from an emerging market and developing country. The Brazilian company Embraer may not be known to the general public but it is known to those who make decisions on aircraft purchases including: international airlines, business jet owners, and military contractors. To build the reputation of the company and to become a success, there had to be an adequate knowledge of foreign markets and how to enter them. No aircraft manufacturer has been successful over the long run by staying in a home domestic market. Airline manufacturers such as Tupolev and Ilyushin which have stayed under the Russian government’s arm have suffered from this. As the article states, Embraer has chosen a different path. It was once, like the Russian companies named above, primarily part of its country’s aeronautics branch and, as a result, it has had its advantages including nearly unlimited funds which the company could use in its research and development. They used these funds to “invest in broad-ranging R&D activities” (Promocorp). Despite this help, the company was not able to become successful and as recent as the 1990’s the company was facing financial problems which were threatening to close its doors. Due to the financial pressure that an aircraft manufacturer could put on a government, the Brazilian government had chosen to privatize the company. Although this was probably not done intentionally, this decision proved to be the best thing that could have been done for the then small aircraft manufacturer and in a relatively short space of time, “Embraer’s ...

... middle of paper ...

... / Innovation." Promocorp / Competitiveness / Economic Development / International Trade / Exports Assistance / Innovation. N.p., n.d. Web. 09 Apr. 2014. .
Sarathy, Ravi. "High-Technology Exports From Newly Industrialized Countries: The Brazilian Commuter Aircraft Industry." California Management Review 27.2 (1985): 60-84. Business Source Complete. Web. 16 Mar. 2014.
United States. United States International Trade Commission. Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness: Investigation No. 332-526. By Jennifer Carroll. Washington, D.C.: U.S. International Trade Commission, 2012. Print.
"World's 3rd Largest Aircraft Maker Upbeat on India." The Economic Times. N.p., n.d. Web. 09 Apr. 2014. .

More about The Emergence of a Global Aircraft Manufacturing Brand

Open Document