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Tesi Di Dottorato Global Networks, Competitive Strategic Alliances in the Automotive Industry. the Case of Declining Europe

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Tesi Di Dottorato Global Networks, Competitive Strategic Alliances in the Automotive Industry. the Case of Declining Europe UNIVERSITY OF MILAN-BICOCCA DEMS - Department of Economics, Management and Statistics ISTEI - Section of Management Doctor of Philosophy in Marketing and Management Cycle XXVII Global Networks and Competitive Strategic Alliances in the Automotive Industry. The Case of declining Europe. Tutor: Prof. Silvio M. BRONDONI PhD Candidate: Francesca TREZZINI MATTA Student ID 700973 Academic Year 2015-2016 Declaration of originality The work referred to in the thesis has not been submitted in support of an application for another degree or qualification of this or any other University or other Institute of learning. I declare that this thesis embodies the result of my own work. Following normal academic conventions, I have made due acknowledgement of the work of others. Copyright statement Copyright in the text of this thesis rests with the author. Copies (by any process) either in full, or of extracts, may be made only in accordance with instructions given by the author. © Francesca Trezzini Matta 2016 All rights reserved. However, this work may be reproduced, without authorisation, under the conditions for Fair Dealing. Therefore, limited reproduction of this work for the purpose of private study, research, criticism, review and news reporting is likely to be in accordance with the law, particularly if cited appropriately. To Christian and to Thomas …love can do miracles… Contents INTRODUCTION ..................................................................................................................... 1 GLOBAL NETWORKS AND COMPETITIVE -STRATEGIC ALLIANCES IN A MARKET -DRIVEN ORIENTATION ........................................................................................................................ 7 1. Key-Elements of Globalisation Process ............................................................................ 7 1.1 New Capitalism and Societal Market Economy ............................................................ 10 2. Global Markets, Market-Driven Management and Network Organisation ..................... 15 2.1 Global Managerial Economics from Production Management to Market-Driven Management ........................................................................................................................ 15 2.1.1 Scarcity Economies and Production Management ..................................................... 15 2.1.2 Marketing Management in balanced Economies ....................................................... 16 2.1.3 Market-Driven Management and Over-Supply .......................................................... 18 3. Networks’ Growth and Competitive Strategic Alliances ................................................ 20 3.1 Competitive Strategic Alliances: a brief Literature Review .......................................... 23 3.2 Competitive Strategic Alliances Types: which Contracts Do Firms Use to Formalise the Alliances? ............................................................................................................................ 26 3.3 Competitive Strategic Alliances and Global Managerial Economics ........................... 32 3.4 Creating Competitive Customer Value through Competitive Strategic Alliances ........ 35 3.5 Competitive Strategic Alliances Success: are they always winning?............................ 36 3.5.1 Market-Driven Winners and Outside-In Capabilities ................................................. 37 3.5.2 Market-Space Competition, Cross-Cultural Management and Network Intangible Assets System ...................................................................................................................... 39 3.5.2.1 Network Intangible Assets System: Network Culture ............................................. 42 3.5.2.2 Network Intangible Assets System: Network Information System ......................... 42 3.5.2.3 Network Intangible Assets System: Network Identity ............................................ 43 3.6 Competitive Strategic Alliances Costs .......................................................................... 44 4. Global Networks and Global Product Policies in Managerial Economics ...................... 46 4.1 New Production Paradigms: the Lean Production ........................................................ 51 4.2 New Production Paradigms: to innovate or to imitate? ................................................. 56 5. Global Networks and Localisation Choices in Global Managerial Economics .............. 59 6. Global Networks and Distribution Policies: Brick-and-Mortar and Click-and-Mortar .. 62 7. Network Communication, Corporate Governance and Corporate Responsibility .......... 64 I 8. Network Metrics and Control of Global Business Relations .......................................... 66 COMPETITIVE STRATEGIC ALLIANCES IN THE AUTOMOTIVE INDUSTRY ........................ 68 1. Automotive Industry History .......................................................................................... 69 1.1 American Automotive Industry History: the Detroit Big Three from the ‘Golden Age’ to the End ............................................................................................................................ 71 1.2 Japanese Automotive Industry History: the ‘ Keiretsu ’ and the Culture of continuous Improvement ....................................................................................................................... 73 1.3 Korean Automotive Industry History: the Role of ‘ Chaebol ’ ....................................... 75 1.4 Chinese Automotive Industry History: from the Socialist Economy to the World Leading Industry ................................................................................................................. 77 2. Automotive Industry Structure and Players .................................................................... 78 2.1 Original Equipment Manufacturers ............................................................................... 79 2.2 Component Suppliers .................................................................................................... 82 2.3 Distributors or Dealers .................................................................................................. 86 3. The State of Art Automotive Industry ............................................................................. 87 3.1 Automotive Industry Production and Sales ................................................................... 90 3.2 Automotive Industry Trends ......................................................................................... 95 4. Automotive Industry Competitive Strategic Alliances.................................................. 105 4.1 Equity Strategic Alliances in the top 10 OEMs........................................................... 106 4.2 Other Equity and Non-Equity Strategic Alliances: some Examples ........................... 131 5. Automotive Industry Strategies: Innovation and Cost Competitive Management ........ 133 6. Automotive Industry new Challenges: they all say green! ............................................ 138 7. Emerging Imperatives and Issues .................................................................................. 141 THE CASE OF DECLINING EUROPE ................................................................................... 143 1. European Automotive Industry History ........................................................................ 143 1.1 The Continental Europe .............................................................................................. 144 1.2 The British Industry died at 109 .................................................................................. 149 2. The Engine of Europe ................................................................................................... 152 3. European Automotive Industry Sales and Production Figures ...................................... 154 4. Leading European Players ............................................................................................. 159 5. Why is Europe in Decline? ............................................................................................ 166 5.1 Impact of Industry Dynamics on Profitability ............................................................. 166 5.2 Excess of Production Capacity .................................................................................... 167 5.3 Demand Stagnation ..................................................................................................... 169 II 5.4 Demography ................................................................................................................ 170 5.5 Market Fragmentation and Lack of a unique Regulation ............................................ 171 5.6 Labour Market, Unemployment and Labour Unions .................................................. 172 5.7 R&D Expenditures and Innovation ............................................................................. 174 5.8 False Environmental Focus ......................................................................................... 176 CONCLUSIONS .................................................................................................................. 181 APPENDIX ......................................................................................................................... 185 BIBLIOGRAPHY ................................................................................................................. 191 ACKNOWLEDGEMENTS
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