Forming portfolio of suppliers: case of international automotive producers, localizing production in Russian

Abstract

International automobile manufacturers came to the Russian market more than 10 years ago, but at the moment only a few were able to develop a portfolio of suppliers and meet regulatory requirements for localization. This work set a goal to examine and define the types of relationships between international automakers, localizing production in Russia and suppliers of automotive components . On the basis of empirical research author has formed four cases and by analyzing them, author came to the conclusion that the classification model of relations proposed for developed markets is not fully adaptive to the developing markets, due to the nature of the relationship and because of the stage of market development. Besides that author identified the differences from model in the field of nature of the relationships and classification of suppliers. The effect of localization on the relationship of suppliers and buyers was revealed. For the market and its participants author formed a number of practical recommendations.