Reference no: EM132338248 , Length: word count:2000

Method and Criteria of Assessment - Case Study-based Assignment (Michelin Case Study; 2,000 words)

Michelin has commissioned you to prepare a report for them outlining how they could make a strategic shift towards solution offerings. They need strategic directions and recommendations on how they should transform their business model, articulate key customer benefits, address potential concerns about the lock-in effect and conflicting interests and how they should manage/reconfigure relationships with their organisational partners and a wider group of stakeholders to make Michelin's servitization successful.

You are to analyse the situation and, with particular reference to material we have covered on this module, you are to present what you consider to be the best course of action and why. Examples include theory in areas such as servitization, business model and product/service innovation, value, relationship building and management, and market development strategies. These are suggestions, but you do not need to focus on all of these suggestions, and you may identify other areas you wish to focus on in relation to distribution.

Unlike the individual applied report assignment, you are not restricted to focusing on any one particular theme and may draw your choice of theory and conceptual frameworks from across the module syllabus.

Case Abstract -

Michelin, a worldwide leader in the tire industry, launched in 2000 a comprehensive tire-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 tires. 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 tire 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?

This case investigates the difficulties that industrial groups face when they transition from selling products to providing service. It enables participants to reflect on the following issues: What's industrial groups' rationale for moving towards solutions? What kind of business model reconfiguration does it imply? How does moving to solutions raise multiple challenges throughout the organization (e.g. in terms of sales force management, risk management, channel relationships etc.)?

Attachment:- Michelin Fleet Case Study.rar