Competitive terms of trade for European automotive suppliers – Overcoming traditional strategies in the independent aftermarket

Competitive terms of trade for European automotive suppliers – Overcoming traditional strategies in the independent aftermarket

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Article ID: iaor20122483
Volume: 11
Issue: 2
Start Page Number: 127
End Page Number: 136
Publication Date: Mar 2012
Journal: Journal of Revenue and Pricing Management
Authors: ,
Keywords: automobile industry, benchmarking, Europe, revenue management
Abstract:

The European Automotive Aftermarket is a liberalized and highly competitive market where Independent Aftermarket Spare Parts (IAM) and Original Equipment Spare Parts are traded. The margins in the IAM are mainly influenced by the terms and conditions granted by the suppliers. In most cases, these systems of terms of trade are a result of structures evolved over time. They are not appropriate to the market conditions and the intermediaries’ performance. The purpose of this study is to develop competitive systems of terms of trade for European IAM suppliers based on theoretical approaches and benchmarks of well‐established IAM suppliers.

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