The Value Net, the Delta Model, and the Aeronautics Industry

Abstract

This article intends to analyze the possibilities of applying strategies based upon the value net to the aeronautics industry. To do so, we have employed the dimensions suggested by the Delta Model since this typology of strategy considers not only the company, its customers and suppliers, but also its complementors. By studying a single although highly representative case in the global aeronautics industry, we have found out that strategies focused on the value net strongly support the business model of the company under investigation. Moreover, these strategies are the means by which the organization studied obtains and sustains competitive advantages. Strategies focused on the value net seem to fit well into the risk-sharing business model employed by Embraer, and the effective management of the value net simultaneously allows each participant to get the most out of the system and strongly contribute to increase system performance. Besides providing all participants with above average economic returns, strategies based upon the value net strengthen the bonding among them while locking them in and competitors out.