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Zurin - B2B

The document discusses Zurin Industries, a Switzerland-based company that sells industrial plastics, diesel engines, industrial components, and air/gas compressors. It generates 40% of its sales from Europe and the rest from the US and Asia. Zurin is heavily dependent on its suppliers, particularly Ericsson, for engineering and R&D skills. Ericsson has increased the price of steel it supplies called XK1000 by 3 times, presenting an important issue for Zurin's relationship and negotiations with Ericsson.

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1K views4 pages

Zurin - B2B

The document discusses Zurin Industries, a Switzerland-based company that sells industrial plastics, diesel engines, industrial components, and air/gas compressors. It generates 40% of its sales from Europe and the rest from the US and Asia. Zurin is heavily dependent on its suppliers, particularly Ericsson, for engineering and R&D skills. Ericsson has increased the price of steel it supplies called XK1000 by 3 times, presenting an important issue for Zurin's relationship and negotiations with Ericsson.

Uploaded by

yogesh85
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Yogesh Nema (047) Varun Mahajan (044) Kasi Muthu (020) Prashant Bhaskar (029)

The Case : Customer Relationship Management Strategies The Company : Zurin Industries Switzerland Based Sales of Francs 5.6B , profit 426 M, RO Sales 7.6% Industrial Plastics, Diesel Engines, Industrial Components, Air & Gas Compressors The Product - Air & Gas Compressors Regulating flow of liquids or gases in plants Standard or Specialty 40% Sales from Europe , Others from US , Asia
Supplier Zurin OEM/Others

Competitive Advantage Ability to solve customer problem Product Quality Durability Suppliers Heavy dependence of engineering and developmental skills of suppliers Lot of time / R&D to develop new product

Sourcing Strategy Inception Participation Decision R & D Sourcing Production Sourcing Swedish Ericsson Fixed price No disclosure of production costs Zurins primary almost exclusive supplier French - Gordier Transparent Pricing Zurin bought total quantity produced operating at maximum capacity

The Issue : Ericsson has increased price of XK1000 steel 3x times

How important is the relationship with Ericsson


Ericsson R&D unit is critical to success of Zurin

Can price be negotiated with Ericsson?

Zurin can negotiate on price terms by promising a increase in orders for XK1000 and XM5000 from Ericsson

Negotiate with Gordier regarding the increase in production Split R&D costs between Zurin and Ericsson Pay Ericsson for the R&D expenses

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