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The Internal Environment Of Embraer

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This paper is a progressive writing for a group business report. In this paper, the internal environment of the South African airline company, Embraer, will be analysed. For this, a resource-based model will be used to analyse Embraer's internal resources, capabilities and core competencies that helped Embraer gain a sustained competitive advantage. This will be followed by discussion on VRIO framework to identify aptitude of resources that assisted Embraer to perform superior over its counterparts. Included in the paper will also be discussion on the concept of value chain analysis which is a model companies use to analyse their activities that help them generate more value over its cost. In conclusion, the paper will state the strategic position of Embraer with a hint of recommendation for it to sustain competitive advantage. …show more content…

2016). Companies in the same industry can also struggle maintaining its competitive advantage because of their exposure to similar opportunities and threats in their market area (Rothaermel 2017). Hence, it is necessary for the companies to analyse their internal resources and capabilities that form their core competencies (Rothaermel 2017). It has been studied that a company’s differentiating internal environment accounts for more than half of its success (Rothaermel 2017). This resource-based view enables the company to identify their strength and weaknesses for strategic competitiveness (Rothaermel 2017). An analysis of a company’s external opportunities and threats in combination with its resources and capabilities propels activities for strategic manoeuvre (Hanson et al. 2016). This, in-turn, creates pathway for above-average returns (AAR) (Hanson et al.

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