Value Adding Strategies for a Tier 3 Automotive Supplier. How Stainless Steel can make a difference.
(2005)Production Management
- Abstract
- This Master Thesis has as purpose to provide information about the automotive industry. The perspective is from the stainless steel wire producer Sandvik Materials Technology Wire. The Network Approach, as formulated by the International Marketing and Purchasing Group, serves as theoretical base for the thesis.
The study concerns the general trends in the automotive industry as a whole. A deeper exploration is done for one part of the automotive industry, i.e. the Safety equipment segment. The thesis includes a case study describing the value chain including Sandvik, Kendrion Spring Systems, Autoliv, SAAB Automobile and Volvo Cars.
The picture of the automotive industry is that it is a tough climate characterised by price pressure. Over... (More) - This Master Thesis has as purpose to provide information about the automotive industry. The perspective is from the stainless steel wire producer Sandvik Materials Technology Wire. The Network Approach, as formulated by the International Marketing and Purchasing Group, serves as theoretical base for the thesis.
The study concerns the general trends in the automotive industry as a whole. A deeper exploration is done for one part of the automotive industry, i.e. the Safety equipment segment. The thesis includes a case study describing the value chain including Sandvik, Kendrion Spring Systems, Autoliv, SAAB Automobile and Volvo Cars.
The picture of the automotive industry is that it is a tough climate characterised by price pressure. Over capacity and globalisation force the companies in the business to fight costs by constantly making the production and purchase more effective. The environment affects the structure of the industry as the number of suppliers is decreasing. The increasing complexity of the cars implies specialisation and consequently a larger part of the value is added external from the car manufacturers.
The thesis establishes two dimensions of power in the industry, component and function power. Component power is influence over the design and properties of individual components in a car. Function power is influence over what functions a car should have and how those functions are executed. For Sandvik, component power is the most relevant, but it does not necessary follow that function power is unimportant. The thesis maps the companies and organisations with interest in the Safety equipment segment and estimates their power in the industry.
With this background the thesis proposes two strategies for successful value adding in the automotive industry, the periphery and the centre strategy. The strategies concern how Sandvik can get involved in customer’s product development. When following the strategies Sandvik should approach actors within as well as outside their present value chain. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2006239
- author
- Calander, Henrik
- supervisor
- organization
- year
- 2005
- type
- M1 - University Diploma
- subject
- other publication id
- 05/5218
- language
- English
- id
- 2006239
- date added to LUP
- 2011-06-29 15:13:27
- date last changed
- 2011-06-29 15:13:27
@misc{2006239,
abstract = {{This Master Thesis has as purpose to provide information about the automotive industry. The perspective is from the stainless steel wire producer Sandvik Materials Technology Wire. The Network Approach, as formulated by the International Marketing and Purchasing Group, serves as theoretical base for the thesis.
The study concerns the general trends in the automotive industry as a whole. A deeper exploration is done for one part of the automotive industry, i.e. the Safety equipment segment. The thesis includes a case study describing the value chain including Sandvik, Kendrion Spring Systems, Autoliv, SAAB Automobile and Volvo Cars.
The picture of the automotive industry is that it is a tough climate characterised by price pressure. Over capacity and globalisation force the companies in the business to fight costs by constantly making the production and purchase more effective. The environment affects the structure of the industry as the number of suppliers is decreasing. The increasing complexity of the cars implies specialisation and consequently a larger part of the value is added external from the car manufacturers.
The thesis establishes two dimensions of power in the industry, component and function power. Component power is influence over the design and properties of individual components in a car. Function power is influence over what functions a car should have and how those functions are executed. For Sandvik, component power is the most relevant, but it does not necessary follow that function power is unimportant. The thesis maps the companies and organisations with interest in the Safety equipment segment and estimates their power in the industry.
With this background the thesis proposes two strategies for successful value adding in the automotive industry, the periphery and the centre strategy. The strategies concern how Sandvik can get involved in customer’s product development. When following the strategies Sandvik should approach actors within as well as outside their present value chain.}},
author = {{Calander, Henrik}},
language = {{eng}},
note = {{Student Paper}},
title = {{Value Adding Strategies for a Tier 3 Automotive Supplier. How Stainless Steel can make a difference.}},
year = {{2005}},
}