Tenneco is a leading auto parts company that makes Walker exhaust systems and Monroe ride-control equipment (shocks, struts) for vehicle manufacturers and the replacement market, with annual revenues in excess of $5.9 billion. After reporting weak earnings, the company undertook a strategy to reduce its break-even point by 25% by selling excess capacity, reducing head count, and introducing new high-contribution-margin products. The company’s senior vice president listed the key elements of the company’s strategy, stating, “We are gaining momentum and transforming our North American aftermarket business with new products, new technology, new positioning strategies, and new pricing.” For each of these “new” elements of Tenneco’s aftermarket business strategy, list the value-chain function that is most applicable.
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