1. The power of the customer There are two categories of customers in the automotive industry: the end customer, the actual users of the final product, and the industry customer, for example the manufacturing company that purchases the necessary items from the supplier. Customer power is the extent of impact the buyer has on a supplier or manufacturing company. Buyers are powerful if: • Purchase in large volumes • Product is standardized • Low switching costs • Price sensitivity • Threat of upstream integration1.1. End customerThe private customer is price sensitive. The cost of purchasing a car represents a significant percentage of the consumer's budget, so price will become a very important factor when choosing a product. The consumer will try to get the optimal variant of the car at the most favorable price. When searching for the preferable offer, there is the opportunity to access the quantity and quality of information necessary to compare different car models and manufacturers. Thanks to the Internet, the availability of information has increased, so consumers can easily access various data, such as car price fluctuations, statistics, performance, ratings, etc. Due to changes in the economic situation, preferences and tastes of consumers, the demand for cars is unstable. Therefore, automotive manufacturers face the challenge of quickly adapting to changing demands and meeting the requirements to win the order. However, in some cases the company fails to keep up, resulting in consumers being disappointed with the products offered. Thanks to the low switching costs and the fairly standardized nature of the product, the consumer has the opportunity to look for alternatives. The American Consumer Satisfac report...... middle of paper ...... possibilities and capabilities, and most importantly, better availability of supplies. However, backward integration also generates risks. Therefore, before entering the new segment of a value chain, the company must do the analysis and evaluate whether there are the necessary resources and skills available. The non-critical element is the next segment of the Kraljic matrix, which is used to illustrate the power of the customer in the manufacturer-supplier relationship. The market availability of non-critical items is good, the value for the company is also quite low. This group of products is usually standardized, inexpensive and purchased in large volumes. Therefore, the power of the customer is very high. The manufacturer has the ability to demand lower prices and higher quality, creating competition between suppliers and pitting them against each other.