Success Factors for the Bearings and Units Agricultural Aftermarket: A Case Study on Potential Strategies for the Agricultural Segment within SKF AB
Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
The agricultural aftermarket for bearings and units is an increasing business that is attractive to producers of spare parts in Europe. However, there is limited information and knowledge about this market. By scanning the environment and identifying potential opportunities in the market as well as investigating internal resources within a producing company of spare parts success factors can be identified in order to expand within the industry. The goal of this thesis was therefore to scan the industry and present strategic recommendations on ways forward within the agricultural aftermarket for bearings and units in Europe, with the purpose of gaining market share. To fulfil the aim of the thesis a case study was conducted on SKF AB, a global manufacturing company with interest in the research area. The study has been conducted through industry analyses such as PESTEL and Porter’s five forces as well as an internal analysis. The outcomes of the analysis were matched together in a SWOT analysis, where Success Factors could be identified. The data was mainly based on internal and external interviews with experts regarding the industry, distributors and end-users. Information was also collected from agricultural exhibitions and desk top research. Moreover, a benchmark was made in order to get inspiration on how work towards the aftermarket could be managed. The result from the analyses shows that the most important factor is to satisfy the end user’s demand in order to be competitive. For the agricultural aftermarket this means to offer standard interchangeable spare parts. Moreover, it is important to create awareness of the benefits of the products in focus among the end-users since the farmers, as end-users in general are price sensitive and prioritise price over quality. Furthermore the internal resources and capabilities are important to consider when expanding. It is therefore important that the company with wishes of expanding in this industry decide if the internal change that needs to be done is a reflection of the external benefit that arises from this change. Finally, knowledge about the end-user and the best way to reach them is essential to take into consideration when expanding in the agricultural aftermarket within bearings and units. In order to create the best conditions to enable an expansion of the agricultural aftermarket geographical focus areas should be chosen and pilot projects should be done to maintain continuous learning.
Place, publisher, year, edition, pages
2011. , 111 p.
Social Behaviour Law
Samhälls-, beteendevetenskap, juridik, framgångsfaktorer, strategi, omvärldsbevakning, eftermarknad
IdentifiersURN: urn:nbn:se:ltu:diva-46406Local ID: 40a19bf2-47d8-4072-9395-c1bf8cca5329OAI: oai:DiVA.org:ltu-46406DiVA: diva2:1019720
Subject / course
Student thesis, at least 30 credits
Industrial and Management Engineering, master's level
Validerat; 20110509 (anonymous)2016-10-042016-10-04Bibliographically approved