Browsing by Author "Zhao, Yingshuai"

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Servitization in the automotive industry: Customer requirements for car subscription models and implications on logistics
(2019) Micka, Maximilian Jean
School of Business | Master's thesis
The research examines car subscription models and the associated logistics in the context of servitization. For car subscription models, customers pay a monthly fee to use a car with a full-service package and the option to swap the car. The objective of this thesis consists of three parts. First, the thesis intends to contribute to the research by describing car subscription models in terms of market offerings and operations. Second, the thesis aims to identify customer preferences that influence car subscription operations. Third, the thesis aims to analyse how car subscription models and customer preferences shape the corresponding logistics. Following the objective of the thesis, the author conducts two methods. With 15 expert interviews, the thesis covers the subject of car subscription models and their logistics. Furthermore, the analysis of 244 respondents from an online survey allows conclusions about potential customer preferences and operational design of car subscription models. The study addresses the first part of the objective by setting car subscription models in the context of servitization. Car subscription models constitute a shift from the sale of the physical product car to a sale of a combination of car use and services. Several car subscription providers, like automotive manufacturers, car rental companies, dealers, and start-ups, offer subscription models. Subscription providers need to adapt their organisation’s processes to best address customer needs. The thesis covers the second part of the objective by identifying six main implications from customer requirements on car subscription models. Potential customers value the full-service package most. They prefer a reduced delivery time over a selection of car variants and are willing to deviate from the desired car for a quicker car provision. Many car subscription providers offer more car swaps than demanded by potential customers. Also, providers have the option to extend contract duration and car age, according to the survey. Through the analysis of the expert interviews and the survey, the study provides findings for the third part of the objective. Car subscription providers target to achieve a high car availability for their customers. Therefore, providers need to balance their car inventory with the desired availability. For short-term increases of the car inventory, the traditional car purchase with an average three-month delivery period consumes too much time. Potential customers value a shorter delivery time. For a shorter delivery time, the automotive industry could produce cars on stock. Customers are satisfied with fewer variants for the car subscription model. Fewer car variants facilitate a production on stock and reduce complexity in the automotive supply chain. Car subscription providers have not yet identified the optimal subscription model. Therefore, the findings of the study contribute to an optimisation of car subscription operations.