Value-adding Collaboration Oriented Key Account Management Strategy For Borgwarner

China automotive industry has witnessed rapid development since1990. Chinabecame the largest auto production and sales market in2010. The fast development ofChina auto market propelled auto makers and parts suppliers to increase investment inChina with operation footprints to get more share in China market.The fast development and increasing competition of China auto market witnessed’auto makers endeavors to lower cost, improve product quality and differentiate productswith the aim to provide consumers with high-value-added products and get more marketshare. Automakers stirving to enhance their competence in supply chain and value chain.This pressure extended to parts suppli’ers operation. They are facing one market withnumber-limited customer which is a scarce resource. In addition, some leading partssuppliers are adopting key account customer management strategy to get and enhance closestrategic cooperation partnership relationships. All this make it stringent for parts supplierenterpirses like BorgWarner to know how to get and keep close strategic cooperation withkey customers, working together to create value ifr end users, and helping key accountcustomers of the competing edge. This made it necessary for BorgWarner to carry out keyaccount management strategy with value-adding collaboration as the guidance.This paper analyzed the development status of China auto and parts industry as well’as BorgWarner key account customers importance and needs traits. Key accountmanagement theory and value chain theory were adopted and integrated to analyze thesolution of key account management strategy with value-adding collaboration as guidance.Methodology SWOT analysis was made to analyze the marketing strategy suitable forBorgWarner, which proposed value-adding collaboration oriented key accountmanagement strategy for BorgWarner. Then B orgW ’arners problem and weakness in keyaccount customer service were analyzed with a key account service case. Based on all this, strategy of key account management strategy with value-adding collaboration at core isproposed for BorgWarner. BorgWarner need adopt key account customer managementmarketing strategy with value-adding collaboration as guidance pirnciple，to create value in’customers value chain and help key account customers gain competition advantage，making itself be the strategic cooperation partner of key account customers. This paper isof reference value not only for foreign parts suppliers, like BorgWarner, but also of help forlocal parts manufacturers to carry out market strategy.