With only four big players - Delphi, Denso, Magna International, and Robert Bosch dominating the entire market revenues, there is a lot to play for when it comes to smaller businesses.
If you’re not fighting for market share, you’ll be fighting for profits as margins are always being tightly squeezed.
Margins were probably tight to begin with but as price becomes the primary contributor to customer loyalty, the more you shave off of your prices, the lower your margins become.
The automotive industry in particular is one rife with excellent customer service but poor customer loyalty in equal doses.
7 out of 10 customers would spend 13% more because of excellent service.
The level of competition in the industry is so vast, that it makes for regular pricing wars between brands and consequently, a lack of switching costs for customers. So, what should you focus on?
Extend the user experience: Maximize your customers' spend beyond just a single sale.
Become a trusted advisor: People buy from people so make sure you're a product expert.