The Discussion Of The Merger Between Embraer And Boeing Company (Term Paper Sample)

Student’s Name Instructor’s Name Course Name 9 October 2018 Embraer and Boeing Company The paper will compare Embraer Aerospace Company with the United States Boeing Aircraft Company. Embraer is a Brazilian company that focuses on the design and manufacture of aircraft for several purposes ranging from commercial to military activities. Boeing has its headquarters in Chicago, and it specializes in the production of airplanes, satellites, and rotorcrafts. A SWOT (strength, weakness, opportunity, and threat) will form the basis of comparison for the two companies. Concerning strength, Boeing has superior market dominance with the various products of different purposes aircraft, ranging from small to big sizes. Thus, it captures an extensive market for its production hence making it remain relevant. Similarly, Embraer draws its strength from a known and robust brand image for military and commercial aircraft. The company finds it niche in the production of high-end corporate jets, which is their target market. The two companies have robust global relationships with different countries and suppliers, which tends to influence their design and technology of newly produced aircraft. In order to gain a competitive edge, the two companies rely on advanced technologies to meet the market demand. However, Embraer depends on its supply chain network for innovative concepts in their manufacturing process while Boeing relies on research and development (Adam 2014). They both utilize highly skilled employees to achieve the desired aircraft that meet consumer demands and changing preferences around the globe. A significant strength of Boeing Company is the availability of a government program that ensures a ready market and offers sustainability to its manufacturing unit. Regarding weaknesses, Embraer is yet to invest in a robust research and development unit that focuses on specialized suppliers. The Brazilian based company also lacks a government-sponsored program that would ensure a market for its aircraft. The weakness in Boeing Company emanates from internal processes within the company. For instance, it the company experiences cost overruns and production delays. A good example would be the project for the production of the 787 Dreamliner which to-date is yet to break even on the cost of production. While Embraer has weak ties to research and development centers, they also lack collaboration with universities that would guarantee innovation. On the contrast, besides a robust research and development unit, Boeing has unilateral ties with universities, and it funds innovation that ensures a changing manufacturing image that can meet customer preferences. Embraer has the opportunity of creating a focus based on cost-design approach t cut-down the manufacturing associating costs. It can also invest in a research and development unit that would reduce its reliance on international suppliers. To boost its current financial status, Embraer has the opportunity to enter into mergers and acquisitions that will assist meet the company objectives. It can further focus on new markets to increase loyalty to the brand. Boeing has opportunities in the aviation industry that relies on other market factors. For instance, ...