Subject category:
Strategy and General Management
Published in:
2014
Length: 13 pages
Data source: Field research
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Abstract
ERT was founded in 1992 in Portugal. It has strong competences in the production of technical textiles for competitive business-to-business markets. In 2012 the company had 240 employees and a turnover of euros40 million. ERT produces their materials using flame bond, hot melt or spraying processes. ERT is also involved in control cutting and sewing activities, complementing the lamination process. The company produces structures which are afterwards incorporated in other car components such as seats, door medallions or armrests. ERT clients are designated as Tier 1 and Tier 2 or first and second level assemblers respectively, which in turn supply Original Equipment Manufacturers (OEMs). ERT has managed to successfully internationalise its activities. Although ERT has been developing a relational strategy with their main clients in the supply chain, based on dyadic relationships, it has been unable to create brand new products collaboratively with OEMs since it operates only as a contract manufacturer (CM). The case approaches supplier-client relationships, more specifically how ERT has evolved technologically in its relationship with large multinational producing according to OEMs, Tier 1 and Tier 2 requirements.
About
Abstract
ERT was founded in 1992 in Portugal. It has strong competences in the production of technical textiles for competitive business-to-business markets. In 2012 the company had 240 employees and a turnover of euros40 million. ERT produces their materials using flame bond, hot melt or spraying processes. ERT is also involved in control cutting and sewing activities, complementing the lamination process. The company produces structures which are afterwards incorporated in other car components such as seats, door medallions or armrests. ERT clients are designated as Tier 1 and Tier 2 or first and second level assemblers respectively, which in turn supply Original Equipment Manufacturers (OEMs). ERT has managed to successfully internationalise its activities. Although ERT has been developing a relational strategy with their main clients in the supply chain, based on dyadic relationships, it has been unable to create brand new products collaboratively with OEMs since it operates only as a contract manufacturer (CM). The case approaches supplier-client relationships, more specifically how ERT has evolved technologically in its relationship with large multinational producing according to OEMs, Tier 1 and Tier 2 requirements.