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This case study focuses on the role of key account managers in a business. It depicts the power struggle between the people of ABB which produces and supplies turbochargers to Caterpillar.
Winter Nie; Thomas E. Vollmann; Inna Francis
Harvard Business Review (IMD333-PDF-ENG)
July 27, 2007
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ABB and Caterpillar (A): Key Account Management Case Answers
Overview – ABB and Caterpillar (A): Key Account Management
- ABB – World leader in power and automation technologies supplying utility and industry customers with products and services
- Caterpillar – World’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines
- Caterpillar – US$67 million in revenue for ABB – over $40 million from supplying turbochargers
- Caterpillar – One of Turbo Systems’ top 3 customers in terms of volume
- Over 30% of 4500 turbochargers produced by ABB sold to Caterpillar – generating less than 10% of the BU’s revenue
To repair the degrading relationship between Caterpillar and ABB arising partly due to the internal power struggle between Group Account Manager and BU Management.
Situation Analysis and Various Alternatives:
Situation 1: Relationship between ABB and Caterpillar
Situation 2: Internal Issues between ABB’s BU Management and Group Account Managers
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