MICHELIN MFS CASE STUDY

These guys talk another language, and we need to roll out other arguments. We are both from the same company. MFS offered large European fleets initially fleets with more than vehicles the complete management of their tire assets during a three to five year-period. This decision moves the strongly product-driven firm into the new world of services and solutions. It is about managing complex selling and delivery processes.

The underlying idea was that transportation companies had different priorities depending on the type of goods they transported such as bulk material, time pressured goods, or highly dangerous chemicals. The consultant advised MFS to streamline its contract structure around a small set of simple and comprehensive standards, with fee estimates, which could be complemented by additional options. This radical move was initiated in with promising growth prospects. Some data have been modified for reasons of confidentiality. We bring new business at no cost. From selling Tires to Selling Kilometers Service Marketing Group 3 goals under the same roof of Michelin raising massy conflicts and inquisition toward the core value of business.

michelin mfs case study

We have service providers with only 45 percent retread rate instead of the 70 percent target. The situation had deteriorated to a. But keep in mind that transportation companies suffer from a negative image, as they are seen as a main source of CO2 emissions. Timely issue I think the case addresses an extremely timely issue.

Business Model Innovation: Michelin Fleet Solutions – From Selling Tires To Selling Kilometers

Keep up to date with email updates Pricing Shipping options Terms of business What’s available from us? Part of our challenge is that it is no longer about selling tires. The objective was to promote a new business model across Europe: Michwlin have service providers with only 45 percent retread rate instead of the 70 percent target. I think the case addresses an extremely timely issue.

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It does this by calculating a whole range of factors, such as what tires the fleet is running on and their condition. MFS, the consultants said, had to design customized bundles to address these specific customer needs. Feeling the criticism, Pierre tried to better explain why so many invoices needed processing.

In that way, the existing of MFS represents competition to the product sales people. MFS, Lipstick on a Pig? It would require massive investments in quality control, reporting tools, and training of service providers. This decision moves the strongly product-driven firm into the new world of services and solutions. Quality control process with the service provider To facilitate geographical expansion, Michelin decided to rely michelni service provider networks to deliver the service to customer.

We are both from the same company. Why are tires so important for trucks? You can change your cookie settings at any time but parts of our site michslin not function correctly without them.

Should Michelin seek to further develop this solution offer, and try to repackage the offer yet another time? Click here to sign up. Only in a second phase, did they start to see the possible advantages of the MFS offer. The case was written as a basis for class discussion rather than to illustrate either effective or ineffective studj of an administrative situation. Go to advanced search.

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Mastering such a life cycle is complex. However, it was acknowledged that Goodyear and Bridgestone would soon enter the market with com- petitive offers. All fields Reference no. This is the flesh of the tire. The situation had deteriorated so much that a well-known consulting firm had been employed to help fix the problems. As one sales manager recalled: Because this market accounted for 21 percent of sales in Europe, it was very important to succeed there. Keep up to date with email updates Pricing Shipping options Terms of business What’s available from us?

From Selling Tires to Selling Kilometers In buying TB tires, most transportation companies adopt a multiple-sourcing strategy, buying different brands of tires for their vehicles and sourcing them from differ- ent distribution networks.

We underestimated by far the costs involved.

michelin mfs case study

By Christian Kowalkowski and Charlotta Windahl.