An Analysis of the UK Auto Component Industry: From the perspective of a Tier 2 safety software company

CHOUDHURY, PRITHVIRAJ (2011) An Analysis of the UK Auto Component Industry: From the perspective of a Tier 2 safety software company. [Dissertation (University of Nottingham only)] (Unpublished)

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The automotive industry is a large critical sector to UK economy as it accounts for close to a million jobs and is the highest exporter for the country. The industry is

characterised by the presence of world’s major OEMs and Tier 1 suppliers along with a wide chain of other suppliers. The relationship between these players has mostly

been studied only to the extent of OEMs and Tier 1 suppliers, leaving a gap in establishing the relationship with Tier 2 suppliers with the other two. This industry

has been in the news for quite some time for being less competitive due to low growth and high number of players but there are also positive news about various government

initiatives to promote low carbon development and to boost up the existing supply chain.

This report aims to unravel the nature of relationship between OEM/Tier 1 suppliers and Tier 2 suppliers in the UK auto component sector and also to discover opportunities that might be present for Silver Atena, a new Tier 2 safety critical supplier.

In doing so, first the auto component market structure has been studied to ascertain the current opportunities, trends, government initiatives etc. The relationship between

OEM/Tier 1 and Tier 2 suppliers has helped in segmenting the clients into three: Tier 1 suppliers, R&D centres and Design Engineering centres. Based on this segmentation, an exhaustive client and competitor analysis has been provided. It is also observed that most current developments are taking place in the fields of electronics/electrical components involving software which makes it a good proposition for Silver Atena. This report has identified four domains for Silver Atena to focus on viz. powertrain, vehicle control, driver assistance and infotainment & telematics.

Even though the future seemed bright, when the current market conditions were analysed it revealed that most participants are making very low profits and even

losses making it a very unattractive market to be in.

However, based on the future prospects in hybrid, electric and fuel cell technologies, the report has made recommendations for Silver and has also highlighted the

challenges that Silver Atena needs to overcome in order to make a successful entry into the auto component market by leveraging its existing skills.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 09 Nov 2011 10:26
Last Modified: 26 Oct 2016 04:58

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