New products and its impacts in a firm´s strategic scope: The case of Embraer and the new KC-390 cargo airplane

Embraer - the Brazilian Aeronautical Enterprise - was created in 1969, by the Brazilian government, to manufacture the Bandeirante¹ military transport aircraft, developed by the Aeronautical Technical Center (CTA) of the Brazilian Air Force. The company was also commissioned to manufacture under license of Aermacchi the EMB 326 Xavante, an advanced trainer and ground attack jet. Other developments were the EMB 400 Urupema glider, and the EMB 200 Ipanema agricultural aircraft. By the late ´70s, new products, such as the EMB 312 Tucano and the EMB 120 Brasilia, followed by the AMX subsonic fighter Italian-Brazilian program, allowed Embraer to reach new technological and industrial levels. The Brasilia was a response to the demand of the regional air transport industry, and it contributed to turning the company into the third worldwide aircraft manufacturer. During the financial crisis of the early 1990s, Embraer postponed the development of the EMB 145, and cancelled the CBA 123 Vector project. In subsequent years, by launching new products for the Defense market, and entering the Executive Aviation market, Embraer significantly increased its market share and revenues. The paper will analyze the expected contributions of the new cargo airplane - the KC-390 - to the company´s market expansion strategic initiatives.