The effect of China imports on Smiths Manufacturing's aftermarket division, Dunair.
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Date
2016
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Abstract
South Africa’s automotive industry has been growing with 37 new brands introduced from
1997 to 2013. The industry has nine local manufacturing automotive plants that produce for
both local and export markets while also importing vehicles from their international
manufacturing facilities. Local automakers utilize local tier component manufacturers for the
parts localization programme. This phenomenon has created an opportunity for international
parts suppliers to provide genuine and alternative replacement parts to the South African
market for in-warranty and out of warranty repairs. This study investigates the effect of the
cheap China copy replacement products on local tier component manufacturers. The objective
of this study is to identify the factors that influence the buying decisions of customers and their
impact on local suppliers. It will also assist local tier component manufacturers and automakers
to formulate strategies that will assist to provide value proposition to customers and industry
stakeholders. The study utilized a mixed research design method that acquired secondary data
from the independent aftermarket intermediaries and primary data from the researcher’s market
analysis. The secondary data was collected from fifty-five intermediaries using questionnaires.
Collected data is analysed in the last chapter with detailed recommendations. The findings
suggest that the market requires cheaper alternative products that are reasonably priced and
available when required.
Description
Master of Business Administration. University of KwaZulu-Natal, Westville 2016.
Keywords
Imports--South Africa., Automobile industry and trade--Economic aspects--South Africa., Automobile industry and trade--South Africa--Equipment and supplies., South Africa--Commerce--China., South Africa--Foreign economic relations--China., Theses--Business administration., China imports., Smiths Manufacturing.