Supplier Positioning Framework in Automotive Industry PPT

This PPT slide, part of the 133-slide Pricing Strategy Workshop PowerPoint presentation, presents a strategic framework for suppliers in the automotive industry, focusing on their positioning based on 2 key dimensions: Product Value and Ability to Execute Complex Activities. The vertical axis represents Product Value, categorized as high or low, while the horizontal axis reflects the Ability to Execute Complex Activities, also divided into high and low.

In the context of this framework, suppliers must clearly define their value propositions. High-value engineered products are highlighted, indicating that suppliers can command a premium due to their unique offerings. The mention of high switching costs for OEMs suggests that suppliers can leverage their specialized products to create barriers for competitors, making it difficult for OEMs to transition to alternative suppliers without incurring significant risks or costs.

The quadrant model illustrates 4 positioning strategies: Strong Position, Average Position, Weak Position, and a central area that likely represents a transitional state. Suppliers in the Strong Position quadrant are characterized by both high product value and high execution ability, suggesting they are well-equipped to meet complex demands. Conversely, those in the Weak Position quadrant may struggle to deliver value or execute effectively, potentially jeopardizing their market share.

The slide emphasizes the importance of superior capabilities in complex collaboration processes, indicating that suppliers who excel in this area can enhance their overall positioning. This framework serves as a guide for suppliers to assess their current standing and identify areas for improvement, ultimately driving strategic decisions that align with market demands.

This slide is part of the Pricing Strategy Workshop PowerPoint presentation.

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Pricing Strategy Workshops Value Proposition Positioning

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