Competitive advantagethrough strategic sourcing

University essay from Linnéuniversitetet/Ekonomihögskolan, ELNU; Linnéuniversitetet/Ekonomihögskolan, ELNU

Abstract: Titel: Competitive advantage through strategic sourcing: A SME perspective. SME: The size of an enterprise can be measured by its employment, sales, or profit (Tam etal, 2007). Small and medium sized enterprises range between 10 and 250 employees. FiveSwedish SMEs was used for the multi case study. Background: The competitive market situation has created a shift in companies’ strategythinking. Strategies focus increasingly on core activities and business development. Oneeffect of this is that companies choose to outsource activities they don´t consider to be corebusiness (Van Weele, 2010; Thrulogachantar and Zailani, 2011). Purpose: The purpose was to investigate strategic sourcing plans that SMEs can apply toincrease their competitive advantage. Methodology: The research was conducted through a qualitative study with a deductiveapproach. A multi-case study was made on five SMEs in Kronobergslän, Sweden, with twosemi-structured interviews at each company. Result and conclusion: The investigation resulted in a current view of SMEs sourcing andsuitable recommendations for SMEs to direct their purchasing activities to strategic sourcing.The process of implementing a strategic plan for SMEs can be seen as relatively difficult butthere are purchasing activities that can be improved by a strategic thinking. To keep in mind isthat supplier’s performance matter, but it is the resources of suppliers that are the maincompetitive advantage and it is in this area where supplier development and sourcingstrategies should focus. Further research: However further research could investigate strategic sourcing in adifferent approach, both from a supplier and customer perspective

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