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Antecedents & benefits of a preferred customer status in a buyer-supplier relationship and the role of the purchasing strategy: A dyadic case study of volkswagen commercial vehicles

Berkey, D.J. (2014) Antecedents & benefits of a preferred customer status in a buyer-supplier relationship and the role of the purchasing strategy: A dyadic case study of volkswagen commercial vehicles.

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Abstract:In recent years, the theory of being awarded with a preferred customer status by a key supplier has captured the interest of scholars and companies. Given the scarcity of the resources a supplier is able to allocate towards its customers, holding a preferred customer status leads to sustainable competitive advantage due to special commitment and benefits provided by the supplier. However, contemporary scientific literature deals merely with the theory revolving around the preferred customer phenomenon while neglecting the practical perspective. Therefore, this case study investigates the preferred customer status in practice by using the example of Volkswagen Commercial Vehicles and three of its key suppliers. By interviewing the purchaser that is responsible for the chemical commodity group and three supplying companies that are operating in the chemical industry, three exchange relationships are elaborated from a dyadic perspective. Thereby benefits resulting from Volkswagen’s preferred status are identified, which confirm theoretical benefits that have been found in existing literature. Those involve high responsiveness, price reductions and transparent information exchange. Beside these benefits, the findings of the case study confirm numerous predecessors to the preferred customer status such as the company’s size, its growth potential and its enormous purchasing volumes. Further, several weaknesses within the buyer-supplier-relationships are identified that lead to the assumption that Volkswagen’s low-price purchasing strategy prevents it from profiting from several cost benefits as well as from enhanced supplier commitment to innovation
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/66202
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