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CHOUDHURY, PRITHVIRAJ (2011)
Languages: English
Types: Unknown
Subjects:
The automotive industry is a large critical sector to UK economy as it accounts for close to a million jobs and is the highest exporter for the country. The industry is characterised by the presence of world’s major OEMs and Tier 1 suppliers along with a wide chain of other suppliers. The relationship between these players has mostly been studied only to the extent of OEMs and Tier 1 suppliers, leaving a gap in establishing the relationship with Tier 2 suppliers with the other two. This industry has been in the news for quite some time for being less competitive due to low growth and high number of players but there are also positive news about various government initiatives to promote low carbon development and to boost up the existing supply chain. This report aims to unravel the nature of relationship between OEM/Tier 1 suppliers and Tier 2 suppliers in the UK auto component sector and also to discover opportunities that might be present for Silver Atena, a new Tier 2 safety critical supplier. In doing so, first the auto component market structure has been studied to ascertain the current opportunities, trends, government initiatives etc. The relationship between OEM/Tier 1 and Tier 2 suppliers has helped in segmenting the clients into three: Tier 1 suppliers, R&D centres and Design Engineering centres. Based on this segmentation, an exhaustive client and competitor analysis has been provided. It is also observed that most current developments are taking place in the fields of electronics/electrical components involving software which makes it a good proposition for Silver Atena. This report has identified four domains for Silver Atena to focus on viz. powertrain, vehicle control, driver assistance and infotainment & telematics. Even though the future seemed bright, when the current market conditions were analysed it revealed that most participants are making very low profits and even losses making it a very unattractive market to be in. However, based on the future prospects in hybrid, electric and fuel cell technologies, the report has made recommendations for Silver and has also highlighted the challenges that Silver Atena needs to overcome in order to make a successful entry into the auto component market by leveraging its existing skills.
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