Wabco Case Study

Sales & Purchasing Management (07822)                                                            

  Was made by: Ladyzhenskaia Vada

Professor: Christine Clarke

                                WABCO case study

WABCO is the number 1 global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles.

The company was founded in 1869 in Piscataway, New Jersey.

They increased they sales by 1.1 billion dollar from 2010 to 2017. Also, they had 9,900 employees in 31 countries around the globe, but now they have 15,000 employees in 40 countries. [1]

The main challenge is that the company has a highly-educated and skilled workforce which is values for its expertise and on the other side has a very development team which has a strong technological focus to “pioneer breakthrough technologies”. The company use the best cost country strategy, however, still has a scope to maintain more and improve more. The company’s strategy is so good because they are creating a world of difference in both developed and emerging markets. They are trying to deliver the right technologies, products and services according to diverse market demands. [2]

WABCO is still have a lot of things which it should improve. Making improvements is not as easy as it can seems. The solutions should be efficient and effective in a given time and in a given cost to keep company on the same level, because, nowadays, customers are looking for cost effective solutions.

The second important challenge is a price. It is very difficult to calculate a sales price across a global markets, because the price should include all expenses. Fixed price is difficult in the way that in all countries markets are different, so its much harder to negotiate with fixed price, because the company has a lot of competitors. To face that challenge WABCO went in a good way, it started to improve their products in order to make customers pay for it.
To have a perfect situation for both, supplier and customer the price should be equal for the product, not higher and not lower, in order to have customer satisfaction.

To sum up, WABCO made their sales higher with help of innovation, they tried to reach customer satisfaction and they did it successfully. WABCO Chairman and Chief Executive Officer was rank among the top 3 best CEO’s in 2014. [3]