Brazilian aircraft manufacturer Embraer has hired consulting firm Oliver Wyman to develop a strategy for penetrating the highly competitive U.S. defense market. Head of Embraer’s defense division, Bosco da Costa Jr., stated that after a thorough selection process, Oliver Wyman was chosen for its expertise in the defense sector. The focus is on promoting a twin-engine military cargo jet, Embraer’s C-930, which would compete with the U.S.-made Lockheed Martin C-130J Super Hercules. Despite the C-930's success with Brazil, South Korea, and several European nations, the US military remains a significant untapped market for the company.
Entering the U.S. defense market presents a formidable challenge for Embraer due to its preference for domestically produced aircraft from manufacturers such as Boeing and Lockheed Martin. The U.S. has traditionally resisted foreign bids, including those from its NATO ally Airbus. One potential strategy proposed by Oliver Wyman involves mergers and acquisitions as a pathway to market entry. Despite these hurdles, Costa highlighted that the C-930 contains enough U.S. content to satisfy local regulatory requirements, positioning Embraer to meet critical market conditions. Oliver Wyman will play a key role in navigating these complexities as Embraer seeks to establish a foothold in the U.S. defense industry.
