“Supplier Inside”: the critical future of automotive suppliers.
As it stands, the strategies automotive suppliers have deployed to date are at risk of becoming obsolete. OEMs are extending their sphere of influence ever further into what has, thus far, been supplier territory; sooner or later, this will lead to a damaging erosion of suppliers’ unique selling points – and corresponding dangers to their profit margins. As far as we can see, there are three potential strategic courses of action which can help to shore up suppliers’ positions. In this essay, we will be taking a detailed look at each of these options:
- CAUTION: focussing on component development and optimisation
- INNOVATION: reaching for system leadership alongside OEMs
- EXPLORATION: staking out new territory e.g. in digital infrastructure