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Compact case
Subject category: Marketing
Published by:
IMD (2013)
Version:
28.03.2019
Revision date:
16-Apr-2019
Length:
5 pages
Data source:
Published sources

Abstract

This is an abridged version. Michelin, a worldwide leader in the tyre industry, launched in 2000 a comprehensive tyre-management solution offer for large European transportation companies, called Michelin Fleet Solutions (MFS). With this new business model, the company ventured into selling kilometers - instead of selling tyres. This decision moves the strongly product-driven firm into the new world of services and solutions. The shift is intuitively appealing, and it provides Michelin with an opportunity to differentiate itself in the tyre business. After 3 years, however, expansion is far below expectations and profitability is terrible - despite the outside help of a strategy consulting firm. The case presents the decision point in 2003, whereby MFS's future has to be decided. Should Michelin seek to further develop this solution offer, and try to repackage the offer yet another time? Or was it just a passing fad that should be abandoned?

Topics

Solution; Transition; Product; Services; Service excellence; Business model change; Fleet management; Channel relationship; Sales force; Customer; Value; Environment

Setting

The events covered by this item took place in 2003.

Geographical setting

Region:
Europe

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