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Market Analysis to Enable a Sustainable Product Strategy in a Multinational Company

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Market Analysis to Enable a Sustainable Product Strategy in a Multinational Company Market analysis to enable a sustainable Product Strategy in a multinational company Master of Science Thesis CARINA WALMAN International Project Management CHALMERS UNIVERSITY OF TECHNOLOGY NORTHUMBRIA Göteborg, Sweden, 2010 Report No. 2010:112 Acknowledgements This dissertation is the final part of the masters program, which will result in a master degree within International Project Management (IPM) at both Chalmers University of Technology and Northumbria University. The master thesis has been executed on behalf of SKF Mekan AB, between February and June 2010. I would like to thank all the people that have contributed with information and helped me during the project both in Sweden and in Germany. I would especially like to thank the supervisor and personnel at SKF: Birgitta Hammar, Thomas Walman, Göran Lindsten, Günter Dusel, Johannes Hüttner, Jürgen Schäfer and Nadine Korell. I would also like to thank my supervisor Inger Bergman that has been helping me by giving me directions that was needed. A special thank goes to Martin Cremer, a previous fellow student for taking the time to help me with the German translations. June 2010 i Content ACKNOWLEDGEMENTS ----------------------------------------------------------------------------------------------------------------- I LIST OF ILLUSTRATIONS ----------------------------------------------------------------------------------------------------------------V LIST OF TABLES -------------------------------------------------------------------------------------------------------------------------- VI PREFACE --------------------------------------------------------------------------------------------------------------------------------- VII LIST OF ABBREVIATIONS ------------------------------------------------------------------------------------------------------------ VIII GLOSSARY -------------------------------------------------------------------------------------------------------------------------------- IX ABSTRACT --------------------------------------------------------------------------------------------------------------------------------- X 1. INTRODUCTION ------------------------------------------------------------------------------------------------------------------- 1 1.1 BACKGROUND ----------------------------------------------------------------------------------------------------------------- 1 1.2 PURPOSE ----------------------------------------------------------------------------------------------------------------------- 2 1.3 LIMITATIONS ------------------------------------------------------------------------------------------------------------------- 2 1.4 STRUCTURE OF THE DISSERTATION -------------------------------------------------------------------------------------------- 2 2. THE METHOD OF INVESTIGATION-------------------------------------------------------------------------------------------- 3 2.1 THE PRE STUDY ---------------------------------------------------------------------------------------------------------------- 3 2.1.1 Data Collection --------------------------------------------------------------------------------------------------------- 4 2.2 THE MAIN STUDY ------------------------------------------------------------------------------------------------------------- 4 2.2.1 Interview with local distributors ------------------------------------------------------------------------------------ 4 2.2.2 Interview with End Users --------------------------------------------------------------------------------------------- 5 2.2.3 Trustworthiness -------------------------------------------------------------------------------------------------------- 5 3. LOCKNUTS – THE COMPONENTS FOR QUICK LOCATION --------------------------------------------------------------- 6 4. PROBLEM ANALYSIS ------------------------------------------------------------------------------------------------------------- 7 4.1 HOW IS THE MARKET TODAY? ------------------------------------------------------------------------------------------------- 7 4.2 HOW IS THE CUSTOMER BEING REACHED? ------------------------------------------------------------------------------------ 7 4.3 WHAT DO THE COMPETITORS OFFER? ---------------------------------------------------------------------------------------- 7 4.1 MULTI-BRAND DISTRIBUTORS ------------------------------------------------------------------------------------------------- 7 4.2 END USERS -------------------------------------------------------------------------------------------------------------------- 8 5. LITERATURE REVIEW ------------------------------------------------------------------------------------------------------------ 9 5.1 INDUSTRIAL MARKET ----------------------------------------------------------------------------------------------------------- 9 5.1.1 The network model ---------------------------------------------------------------------------------------------------- 9 5.2 COMMUNICATION AND TRUST ---------------------------------------------------------------------------------------------- 10 5.3 COMMITMENT --------------------------------------------------------------------------------------------------------------- 10 5.1 BUSINESS TO BUSINESS ------------------------------------------------------------------------------------------------------ 10 5.4 UNCERTAINTIES AND ABILITIES BETWEEN SUPPLIER AND CUSTOMER ------------------------------------------------------- 11 5.4.1 Uncertainties for Customers --------------------------------------------------------------------------------------- 11 5.4.2 Uncertainties for Suppliers ----------------------------------------------------------------------------------------- 12 5.5 RELATIONSHIPS WITH CUSTOMER ------------------------------------------------------------------------------------------- 13 5.5.1 How a relationship develops --------------------------------------------------------------------------------------- 13 5.5.2 Customers’ needs ---------------------------------------------------------------------------------------------------- 13 5.5.3 Customers’ Value ----------------------------------------------------------------------------------------------------- 14 5.6 RELATIONSHIPS WITH SUPPLIERS -------------------------------------------------------------------------------------------- 15 5.7 OPPORTUNITY ANALYSIS ---------------------------------------------------------------------------------------------------- 15 ii 5.7.1 Financial considerations -------------------------------------------------------------------------------------------- 15 5.7.2 External Factors ------------------------------------------------------------------------------------------------------ 15 5.7.3 Internal Factors ------------------------------------------------------------------------------------------------------- 16 5.8 THE INDUSTRY LIFE CYCLE AND PORTER’S FIVE FORCES -------------------------------------------------------------------- 16 5.9 STRUCTURE PLAN ------------------------------------------------------------------------------------------------------------ 18 5.10 BUSINESS PLAN -------------------------------------------------------------------------------------------------------------- 20 5.10.1 Competitor analysis ---------------------------------------------------------------------------------------------- 21 5.11 THE PRODUCT DEVELOPMENT PROCESS ------------------------------------------------------------------------------------ 21 5.11.1 Product Development Teams ---------------------------------------------------------------------------------- 21 5.12 THE LEAN PRODUCT DEVELOPMENT PROCESS ------------------------------------------------------------------------------ 22 5.12.1 The Process Subsystem: LPDS Principles 1 to 4 ------------------------------------------------------------- 22 5.12.2 The People Subsystem: LPDS Principles 5 to 10 ------------------------------------------------------------ 23 5.12.3 The Tools and Technology Subsystem: LPDS Principles 11 to 13 --------------------------------------- 24 5.13 DEVELOPING SUCCESSFUL PRODUCTS --------------------------------------------------------------------------------------- 25 5.14 WHY PRODUCT DEVELOPMENT PROJECTS? --------------------------------------------------------------------------------- 25 5.15 THE GENERATIONS OF PRODUCT MANAGEMENT--------------------------------------------------------------------------- 26 5.15.1 The new Generation of R&D Productivity Generation Process ----------------------------------------- 27 5.16 THE CULTURAL DIFFERENCES ------------------------------------------------------------------------------------------------ 28 6. RESEARCH METHODOLOGY -------------------------------------------------------------------------------------------------- 29 6.1 DECIDING THE SUITABLE TECHNIQUES TO USE------------------------------------------------------------------------------- 29 6.2 PRIMARY AND SECONDARY DATA ------------------------------------------------------------------------------------------- 29 6.3 QUANTITATIVE --------------------------------------------------------------------------------------------------------------- 30 6.4 QUALITATIVE ---------------------------------------------------------------------------------------------------------------- 30 6.5 DIFFERENCES BETWEEN QUANTITATIVE AND QUALITATIVE----------------------------------------------------------------- 30 6.6 INTERVIEW TECHNIQUES -----------------------------------------------------------------------------------------------------
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