Relationship marketing in central Europe - A case study of Volvo Truck Czech

Abstract

Increased competition around the world has forced companies to search for new ways to compete. Relationships are among the most valuable assets a company can have and can create competitive advantages for a company. Relationship marketing promotes building close relationships with customers and other players in the network. Fundamental relationship ingredients are trust and commitment, but other variables such as mutual goal orientation and mutual value sharing are also important for the success of the relationship and the strategy.

However, relationships and their substances are not the same in markets around the world. In the former centrally planned economies there is little trust and commitment among people. Instead other ingredients are valued and form the fundamentals that the relationship is built upon. The relationship development process also looks different and consists of different variables.

In this thesis Volvo Truck Czech is used as a case company in order to study how a western company active in a central European market should build relationships with its customers when entering the market as a second mover. The case company and the problem fits well together as the company is active in an industry where the value added features are important.