Technological, organizational and alliance strategies in the auto parts supplier industry

Abstract

In order to compete favorably in the auto parts supplier markets, domestically and internationally, participating firms must position their manufacturing to meet changing demands of the auto manufacturers. Changes in the supplier industry (30000 firms and 950000 workers) include both technological and business organizational changes. To determine possible industry-based strategies, research was conducted with select-positioned firms. Their information was correlated with literature and trade information regarding manufacturing systems. The authors report results of the systematic strategic management process approach to the environment (economic, social, political, and technological), and posits alternative approaches to survive and prosper in this industry. The competing strategy formulated for the auto parts supplier is focused on: (1) the shifting boundary of outsourcing/in-house decisions by the OEM; and (2) the changing position of the auto parts supplier to compete for the business.<>