A model for foreign sales strategies in Iran Khodro with an emphasis on the supply chain

PhD Dissertation in Industrial Management, Production and Operation Orientation

Abstract:

    The global automobile industry has grown a lot compared to other industries in recent decades. Every day, the intensity of competition in this industry increases to gain global market share. Iran's automobile industry has also taken effective steps to gain global market share through exports. In this regard, the current research has been explained as a model for foreign sales strategies in Iran Khodro with an emphasis on the supply chain. The present research specifically includes two main steps to improve the competitiveness of car exports to the target markets. In the first step, the main research framework has been developed based on the identification of dimensions (power of the supply chain) and the application of these dimensions. Based on this, by using the confirmatory factor analysis technique, the components of (power of the supply chain) and using the path analysis of the effect of (power of the supply chain) on (competitive advantages) and (strategic advantages of the supply chain in export) and finally (competitiveness of the supply chain for export) have been tested. In the second step, the investigation of the influencing factors on exports and the design of a fuzzy decision support system based on eight selected criteria out of sixty-one known sub-criteria have been prioritized in the research. It should be noted that considering the determining role of the target countries in exports, the decision support system was designed and implemented based on the selection of sixty-one sub-criteria of financial, political, legal, infrastructure, labor and tax factors in the MATLAB program based on Sogeno logic.

The theoretical framework of this research will examine the concepts of competitiveness, automobile industry, supply chain and its effect on exports, as well as the factors affecting the competitiveness of this industry in the world. These components have been collected with the help of interviews with experts, document studies and recording the experience of Iran Khodro Company through its presence in international markets. The method of this research is of a descriptive-survey type, which is used to analyze the route using Lisrel software and to create a decision support system using MATLAB software. The distribution of the questionnaires of this research was done in the community of experts in the automotive industry in Iran Khodro, Sapco and Isaco companies as the main links of the automotive supply chain. It should be noted that production factors emphasize the role of technology aspects in the development of the automobile industry, which, according to the researcher, investment in production engineering and product engineering processes is a strategic solution for the Iranian automobile industry to participate in international markets. The results of the research in the second step are to pay attention to (factors affecting exports) or external factors. At the same time, by using the decision support system designed based on (factors affecting export), the priority of the markets can also be determined. According to the results of the research, the priority is to export to markets where the destination government has a positive attitude towards the goods made in Iran, or in other words, the political relationship has an acceptable strength. According to the researcher, according to the existing infrastructure and competitiveness of Iranian products, countries with a favorable political relationship are the priority for export. It should be noted that paying attention to the capacity of the target market and sales infrastructure through leasing are also ways to increase the competitiveness of exports. Key words: competitiveness - car export - supply chain - Iran Khodro company - structural equations - decision support system. Industrial development is one of the basic components of the growth and development of countries. In today's competitive world, industries have a strategic position because progress in this field, in addition to increasing production and job creation, facilitates the provision of services and increases productivity in other sectors.

The integration of the global economy within the framework of multilateral agreements of the World Trade Organization and regional economic agreements such as the NAFTA agreement and the European Union puts all-round pressure on countries (especially developing countries) regarding trade liberalization and competition within the framework of global free markets. Based on this, the necessity of an integrated and systematic movement to strengthen different sectors of the national economy is more evident than ever.. What distinguishes today's companies and organizations from the world of a few decades ago is the unstable and complex environment, increasing competition, rapid changes and developments, technological advances, the ever-increasing development of communication and rapid information exchanges. One of the characteristics of today's successful companies is the ability to be competitive, and at the same time, the characteristic of unsuccessful companies is the lack of this characteristic. Competitiveness as a multidimensional concept can be explained and investigated in various organizations and industries, but presence in the international environment requires a special look at the competitiveness of industries. Undoubtedly, the current conditions regarding globalization will face any planning outside the circulation of the global economy with economic failure. Today, industrial organization is important in keeping with the international political and economic developments because it has caused the effective allocation of production resources according to global standards. The principle of competition is undoubtedly an undeniable principle in all industries, and industries that do not follow this principle are doomed to isolation and destruction. Today, for effective competitiveness, paying attention to the customer is considered the most important and effective element, which must meet his expectations in the best possible way. (Dess and Davies [3], 2003)

The automotive industry is one of the important and integral components of global trade and industry. With more than 120 years in the world, as the mother industry or locomotive of industries, the automobile industry has enjoyed a key and fundamental role in human societies, and despite the existence of more than seven hundred million automobiles in the world, the economic, cultural and social aspects of human life have undergone extensive and fundamental changes and have been noticed more than before. A set of metal, plastic, chemical, wooden, fabric, insulation, glass, electrical, electronic, metallurgy, design, management and other sciences and techniques, art and culture technologies have been involved in the structure of the car, so that the degree of development of each of the above industries will have a direct impact on the quality of product design and manufacturing. does According to the report of the Business Monitor quarterly [5], the production, sale and export of cars in Iran in 2011 had a completely upward trend, although the Iranian car industry, like in the past, is still facing problems and challenges, including dependence on government support.  

In view of the increase in production capacity, the lack of actual demand inside the country, and also gaining bargaining power in the global market, automobile companies have planned sales in international markets. Although the companies' export programs have a history of several years, many of these companies still suffer from many problems in their supply chain. Some critics of car exports specifically consider the lack of ability of the car supply chain to be present in the global market as the main problem of car exports. Based on this, the competitiveness of the automotive industry is significantly affected by the active supply chain in this field. They also consider the monopolistic competition[6] of the world's major automobile companies as a major obstacle in the way of Iranian automobile manufacturers entering the world market. But without doubt, it can be said that the country's automobile industry is no longer local, and it is even considered the crystallization and symbol of globalization. Joint car designs with international car manufacturers and investments made to create production lines in countries around the world can be a proof of this claim. Considering the presence of two major car manufacturers in the country and very similar structures in both mentioned companies, the current research has specifically focused on Iran Khodro as the top company in Iran's automotive industry. It is obvious that the results of this research can be generalized to the entire Iranian automotive industry. In line with the establishment of Iran Khodro Company in international markets, paying attention to the supply chain as the main source of organizations' competitiveness is of particular importance. Reducing costs, increasing market share, closer relationships with customers (Ferguson [7], 2000), reducing uncertainty, increasing responsiveness through synergy of activities (Maloney and Benton [8], 2000), increasing the flow of materials and product development, improving flexibility, quality, and innovation (Carter and Narasinham [9], 1996) are some of the potential benefits that will accrue to the creation of integrated relationships in supply chains. became