A research study submitted in partial fulfilhnent of the requirements for the degree of Master of Business Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1993

This case study attempts to explore differences and similarities in the buyer-supplier relationships between Thai and European automobile plastic parts industry. Recently, strong buyer-supplier relationship is known as one of the characteristics of the automobile industry. Unlike the conventional studies, this research analyzes the triad buyer-supplier relationships among automobile assembler, part manufacturer, and plastic resin manufacturer. From the results of the study, a characteristic pattern of buyer-supplier relationships in the automobile plastic part industry is proposed. The seven main characteristics include sourcing, communication, network cooperation, technical collaboration, long-term relationship, competitiveness: technology/strategy/cost and multi-functional involvement. In addition, the relationship between the buyer-supplier relation and the market entry barriers is explored from the viewpoint of the potential plastic resin manufacturers. All of the plastic resin manufacturers in the survey recognize the strong buyer-supplier relationship as the most crucial market entry barrier. The recommendations on market strategy and implications to the automobile industry are also addressed in this study. However, detailed analysis on the degree of impacts of buyersupplier relationships on the entry barriers and on market strategy are not conducted. In this sense, this research is an exploratory study. This research study may be beneficial to the suppliers, both part manufacturers and plastic resin suppliers in anticipating the needs and requirements of the buyers in the automobile industry.