Supply Network Management in Emerging Markets

Abstract

Following the global business development of the MNCs, the presence of the MNCs in the emerging markets has led to quick transfers of manufacturing capacity to these markets. However, limited technological capacity and innovative ability are still the main characteristics of these markets. How to take advantage of the local competitive advantages and maximise the use of local resources and capabilities of the suppliers are therefore the challenging issues for the MNCs. The aim of this thesis is to investigate the current market situation in the emerging market and to analyse how MNCs adjust their supply network with regard to the economy transition of emerging markets. To that purpose, we have used one of Volvo Bus Corporation joint ventures in China – Silver Bus Corporation (SBC) as our case company. The complexity and dynamism of the Chinese bus market poses several challenges to MNCs. In order to present an overview of market situation and industry environment, we briefly investigate the macro and meso environment of China and bus industry. We then focus on the supply network management of SBC in China. By analysing its sourcing strategy and supplier relationship, we identify SBC’s current supply structure in China. We finally present how SBC could modify its supply network by organizing its sourcing strategy and its suppliers’ relationship.