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Supplier Relationship Management in Automotive Industry: -How to be an attractive customer for international suppliers
University West, School of Business, Economics and IT, Division of Business Administration.
University West, School of Business, Economics and IT, Division of Business Administration.
2018 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

In the recent past, the source of major technological advancements in the automotive industry has been from suppliers. It is evident that the bargaining power of suppliers is no longer based on provision of minimum price but on their ability to provide new technological developments. Suppliers are becoming more important as the automotive industry experiences disruptions through new technologies such as diverse mobility, autonomous driving, electrification and connectivity. Consequently, there has been scarcity of competitive suppliers. This has led to customers striving to be more attractive to have preferential access to new technologies in the automotive industry. The purpose of this thesis was to provide a deeper understanding on the attributes that influence customer attractiveness from international suppliers’ point of view in the automotive industry. This study has facilitated the identification of current customer attributes that lead to customer attractiveness as well as establishment of a holistic value creation framework on supplier relationship management and customer attractiveness. Qualitative research strategy was carried out to determine both the usefulness of supplier relationship management and importance of customer attractiveness, and important factors were highlighted. The methods that were used are qualitative research strategy based on a case study at Volvo Cars Procurement. The empirical findings are based on semi-structured interviews by six suppliers that answered twenty questions that included ten main questions focused on the research subject. The empirical evidence consisted the perception of six different suppliers that were interviewed. In the analysis the discussion is linked to the literature review together with the empirical evidence. The authors own thoughts are also presented. Eight attributes were considered to influence customer attractiveness. They include relational values, company features, innovation capabilities, communication function, intangible assets, business environment, company systems and potential strategy partnerships are the main eight attributes. Customer attractiveness and international view were also discussed as part of the analysis. The attributes relational values, company features, innovation capabilities, communication function and potential strategic partnerships were regarded to have significant influence on customer attractiveness. On the other hand, intangible assets, business environment and company systems were important but not highlighted by all interviewees. These findings and the resultant empirically grounded framework in this thesis provides a deeper understanding on customer attractiveness in the automotive industry. Based on this, customers can select attributes that match their strategic goals and shape their relationships with suppliers.

Place, publisher, year, edition, pages
2018. , p. 54
Keywords [en]
Supplier relationship management, customer of choice, customer attractiveness, buyer attractiveness, automotive industry
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hv:diva-12593Local ID: EXD951OAI: oai:DiVA.org:hv-12593DiVA, id: diva2:1228489
Subject / course
Business administration
Educational program
International Business
Supervisors
Examiners
Available from: 2018-06-29 Created: 2018-06-28 Last updated: 2018-06-29Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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