Article metrics

  • citations in SCindeks: 0
  • citations in CrossRef:[1]
  • citations in Google Scholar:[=>]
  • visits in previous 30 days:46
  • full-text downloads in 30 days:21
article: 8 from 137  
Back back to result list
Ekonomika preduzeća
2017, vol. 65, iss. 5-6, pp. 413-426
article language: English
document type: Preliminary Report
doi:10.5937/EKOPRE1706413D


Basic characteristics of competitive relations in the after-sales market of motor vehicles in Serbia
Institute of Economic Sciences

Project

European integrations and social and economic changes in Serbian economy on the way to the EU (MESTD - 47009)
Challenges and Prospects of Structural Changes in Serbia: Strategic Directions for Economic Development and Harmonization with EU Requirements (MESTD - 179015)

Abstract

The aftermarket (guarantees, services, sales and use of replacement parts and accessories) is characterized by a large number of users on the demand side, while acquisition of this type of product is treated as capital procurement (purchase of cars, trucks, buses, etc.). Capital procurement is symbolized by large expenditures, a relatively long shelf life, as well as a significant share of maintenance costs, namely servicing the products at the expense of the buyer, etc. After-sales servicing and the supply of spare parts provided by individual manufacturers are important elements when deciding on the purchase of a vehicle. However, it is difficult for consumers to foresee the cost of total purchase (the price of the primary product and the total cost of post-sales services over the period of use), since vehicles are consumed for a long period of time after the purchase (and expiration of the warranty period) which includes a large number of regular servicing and emergency repairs. Accordingly, the primary goal of this paper is to deepen the knowledge and analysis of the basic features of this market, which is significant for the budget of a large number of users, since the previous information on the topic is extremely limited. In addition, the analysis of the structure and the main actors (authorized and independent service providers) and their competitive relations is of great importance for all drivers of motor vehicles, as it can assist them in planning and budgeting not just of repairs but also the purchase of motor vehicles, and accordingly reduce the risk of poor decisions related to the purchase of primary products and selecting providers of after- sales service during the period of use of the product.

Keywords

References

*** (2010) Commission Notice: Supplementary guidelines on vertical restraints in agreements for the sale and repair of motor vehicles and for the distribution of spare parts for motor vehicles. Official Journal of the European Union, C-138, 16
*** (2015) The car aftermarkets in Serbia 2014. Bergisch Gladbach: Wolk After Sales Experts, Wolk After Sales Experts
*** (2012) The European automotive aftermarket landscape: Customer perspective, market dynamics and outlook to 2020. Boston: BCG, BCG
*** (2010) Block Exemption Regulation 461/2010 Commission Regulation (EU) No 461/2010 of 27 May 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the. Official Journal of the European Union L, 129, 52-57
ACEA (2016) Automobile industry pocket guide for 2016-2017. Brussels: ACEA
Advantage Truck Center Retrieved on July 25th 2017 from http://www.advantagetruckparts.com/blog/the-truth-about-aftermarket-truck-parts/http://www.advantagetruckparts.com/blog/the-truth-about-aftermarket-truck-parts
Ahn, J.S., Sohn, S.Y. (2009) Customer pattern search for after-sales service in manufacturing. Expert Systems with Applications, 36(3): 5371-5375
Ashenbaum, B. (2006) Designing the supply chain for production and aftermarket needs. Critical Issues Report. CAPS: Center for Strategic Supply Research
AutoPOLIS. (2000) The natural link between sales and service. An investigation for the Directorate-General for Competition of the European Commission. Brussels: AutoPOLIS
Bork, R. (1993) The antitrust paradox, a policy at war with itself, with a new introduction and epilogue. New York: The Free Press
Capgemini Consulting (2012) The aftermarket in the automotive industry. St. Galen, Capgemini Consulting
Carlton, D.W. (2010) A general analysis of exclusion and conduct and refusal to deal: Why aspen and Kodak are misguided. NBER Working Paper, Cambridge, No. 8105
Clark, J., Simon, S. (2010) The New Legal Framework for Motor Vehicle Distribution: A Toolkit to Deal with Real Competition Breakdowns. Journal of European Competition Law & Practice, 1(6): 478-490
Cohen, M.A., Agrawal, N., Agrawal, V. (2006) Winning in the aftermarket. Harvard Business Review, 84(5); 129-138
Commission for Protection of Competition of the Republic of Serbia (2016) Aftermarkets. Belgrade, Commission for Protection of Competition of the Republic of Serbia
Coppi, L. (2007) Aftermarket Monopolization: The Emerging Consensus in Economics. Antitrust Bulletin, 52(1): 53-71
Domazet, I., Simeunović, I. (2015) Company's fiduciary responsibility for the automobile liability insurance. Ekonomika preduzeća, vol. 63, br. 3-4, str. 196-204
Dombrowski, U., Engel, C. (2014) Impact of Electric Mobility on the after Sales Service in the Automotive Industry. Procedia CIRP, 16: 152-157
Ehinlanwo, O.O., Zairi, M. (1996) Best practice in the car after-sales service: An empirical study of Ford, Toyota, Nissan and Fiat in Germany - Part 1. Business Process Management Journal, 2(2): 39-56
Goldfine, D.A.J., Vorassi, K.M. (2004) The fall of the Kodak aftermarket doctrine: Dying a slow death in the lower courts. Antitrust Law Journal, 1/2004, 209-231
Gotzen, S. (2013) The European automotive aftermarket: The impact of the economic crisis and of the protection of competition principles of the SMEs of the sector. in: EESC meeting on SMEs, Craft and Professions Category, Rome: Craft and Professions Category
Håkansson, H., Snehota, I. (2006) No business is an island: The network concept of business strategy. Scandinavian Journal of Management, 22(3): 256-270
Hammer, M., Champy, J. (1994) Reengineering the corporation: A manifesto for business revolution. New York: Harperbusiness
Hovenkamp, H. (1993) Market power in aftermarkets: Antitrust policy and the Kodak case. UCLA Law Review, 40(6); 1447-1459
International Federation of Automotive Aftermarket Distributors (2012) The new competition law framework for the automotive aftermarket. Brussels, Right to Repair Campaign (R2RC), International Federation of Automotive Aftermarket Distributors
Kurata, H., Nam, S. (2010) After-sales service competition in a supply chain: Optimization of customer satisfaction level or profit or both?. International Journal of Production Economics, 127(1): 136-146
Legnani, E., Cavalieri, S., Ierace, S. (2009) A framework for the configuration of after-sales service processes. Production Planning & Control, 20(2): 113-124
Mathieu, V. (2001) Service strategies within the manufacturing sector: benefits, costs and partnership. International Journal of Service Industry Management, 12(5): 451-475
Ministarstvo trgovine Republike Srbije (2016) Žalbe potrošača motornih vozila. Beograd, Ministarstvo trgovine Republike Srbije
Morita, H., Waldman, M. (2010) Competition, Monopoly Maintenance, and Consumer Switching Costs. American Economic Journal: Microeconomics, 2(1): 230-255
OECD (2017) Competition issues in aftermarkets. Paris
Saccani, N., Johansson, P., Perona, M. (2007) Configuring the after-sales service supply chain: A multiple case study. International Journal of Production Economics, 110(1-2): 52-69
Schulz, L. (2015) The Economics of Aftermarkets. Journal of European Competition Law & Practice, 6(2): 123-128
Schwartz, M., Werden, G. (1996) A quality signaling rationale for aftermarket tying. Antitrust Law Journal, 2/1996, 387-404
Seth, N., Deshmukh, S.G., Vrat, P. (2005) Service quality models: a review. International Journal of Quality & Reliability Management, 22(9): 913-949
Slater, S.F. (1996) The challenge of sustaining competitive advantage. Industrial Marketing Management, 25(1): 79-86
Stevanović, I., Stanojević, D., Nedić, A. (2013) Setting the after sale process and quality control at car dealerships to the purpose of increasing clients satisfaction. Journal of Applied Engineering Science, vol. 11, br. 2, str. 81-88
Tysseland, B.E., Halskau, H. (2007) Spare parts inventory: A literature review with focus on initial provisioning and obsolescence management. in: The 19th Annual NOFOMA Conference Proceedings, Reykjavik, Iceland
Verstrepenl, S., Deschoolmeeste, D., van den Berl, R. (1999) Servitization in the automotive sector: Creating value and competitive advantage through service after sales. in: Mertins K.; Krause O.; Schallock B. [ed.] Global Production Management. The International Federation for Information Processing, Boston: Springer
Wilson, T.L. (1999) International After-Sales Services. Journal of Global Marketing, 13(1): 5-27