From Concrete to a Flooring Solution: Holcim Mexico - Selling a Commodity That Isn't (Overhead Case)
Case
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Reference no.
IMD-7-1718
Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 06.04.2016
Length: 10 pages
Data source: Field research
Abstract
Problem: A high quality, value-added product (shrinkage-compensating concrete) sold to contractors whose incentive is to save costs, not provide long-term value; limited access to beneficiaries of value (end customer planning department). Solution: Sell directly to 'owners' (department responsible for maintenance and follow-on costs) to create demand from the end customer through the contractor by clearly demonstrating value. Key Steps: 1) Make the problem visible for low-visibility item, ie sell a solution for a problem perceived as not easy to solve; 2) Generate credible data and insights on value opportunity; 3) Ensure that additional value created is tangible for all stakeholders; 4) Align different stakeholders and units responsible for budgeting decisions around the same action plan.
Location:
Industry:
Size:
>USD100 million
Other setting(s):
2013 - 2014
About
Abstract
Problem: A high quality, value-added product (shrinkage-compensating concrete) sold to contractors whose incentive is to save costs, not provide long-term value; limited access to beneficiaries of value (end customer planning department). Solution: Sell directly to 'owners' (department responsible for maintenance and follow-on costs) to create demand from the end customer through the contractor by clearly demonstrating value. Key Steps: 1) Make the problem visible for low-visibility item, ie sell a solution for a problem perceived as not easy to solve; 2) Generate credible data and insights on value opportunity; 3) Ensure that additional value created is tangible for all stakeholders; 4) Align different stakeholders and units responsible for budgeting decisions around the same action plan.
Settings
Location:
Industry:
Size:
>USD100 million
Other setting(s):
2013 - 2014