Evaluate Risks Before Expansion

Entering new market segments presents significant risks and requires careful evaluation of existing successes and challenges faced by competitors. Embraer must weigh the implications of stepping beyond its established stronghold in the regional jet market, especially in light of Bombardier's experience with its C-Series. Despite launching a well-regarded aircraft, Bombardier encountered severe financial and manufacturing pressures, compounded by trade disputes leading to potential tariffs. These lessons highlight the importance of strategic risk assessment before pursuing expansion into competing markets dominated by industry giants like Airbus and Boeing.