MICHELIN MFS CASE STUDY

It is its backbone. Michelin launched Michelin Fleet Solutions to offer transportation companies comprehensive tyre management solutions for their fleets of vehicles over a three to five year period. The consultancy firm conducted a massive training campaign, providing the sales force with new tools such as consistent contracting process and a new client-focused logic, shifting away from a historically strong product orientation. Sales Directors complain to me very often. Doing so would put the service provider on the same path as Michelin which is providing the best service so that the retread rate is maximized. Should the company pursue this painful path?

Or was it just a passing fad that should be abandoned? For Michelin, this was a great way to develop long-lasting relationships with growing transport players and ensure that clients would eventually experience the full value of Michelin tires. From Selling Tires to Selling Kilometers costs. However, three years later, the pic- ture had become much darker: Original Equipment is the original tire fitting on brand-new vehicles. We may end up making more money from tire-related services than from our traditional business. MFS is a great solution to create the competitive advantage of the tires in the consolidated market.

Keep up to date with email updates Pricing Shipping options Terms of business What’s available from us? Miichelin constant monitoring of service quality. Should Michelin seek to further develop this solution offer, and try to repackage the offer yet another time?

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

The geographical expansion would for sure only further add to existing frictions. It employs more thanpeople stucy, has 70 industrial sites in 18 countries and a sales presence in more than coun- tries. In this respect, capitalizing so much on service provid- ers may be dangerous: These results were however disappointing.

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michelin mfs case study

At this stage, Michelin should not worry about them become their competitors as their size is not sufficient to provide tire management service to big clients. Mixhelin with permission from the author and www. As a consequence, customers were reluctant to pay a price premium.

Clearly, drastic steps were required to keep MFS alive. Another unexpected phenomenon further deteriorated MFS margins: Click here to sign up. At this stage, Michelin should not worry about them become their competitors as their size is not sufficient to provide tire management service to big clients.

To overcome this turmoil, the company need to build up an extensive database to be able to work out as precisely as possible the price- per- mile it should charge. To find articles related to executive education, please visit one of the following top searches:.

View mihelin full list of featured cases. But, this is an incredible responsibility on their shoulders! We will have to reconfigure everything, and this will take time. Within only a few decades, truly European players have emerged, and this is unlikely to stop considering that 80 percent of European transportation companies still operate with less than 5 trucks. We do not only entrust them with service execution, but also with an important part of our cost structure. Difficulties went well beyond the contracting phase.

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Tensions mostly came from conflicting interests: Both initiatives, though not strategically developed, generated more than 90 million euros in revenues in However, this advantage only mate- csse when our tires are properly taken care of. Replacement is the other avenue for the TB tire market. Tensions mostly came from conflicting interests: Would Michelin pursue or abandon its solution business? It does this by calculating a whole range of factors, such as what tires the fleet is running on and their condition.

michelin mfs case study

These guys talk another language, and we need to roll out other arguments. The customer had just met a week before with a Michelin product salesman openly criticizing our offer.

It is a mixture of rubber and silica.

Michelin by Debbie Lu on Prezi

This can make quite a difference, as one can leave a lot of millimeters of rubber on the road. With MFS, Michelin had moved from its traditional business of manufacturing and selling tires toward the new world of service, i.

Tires undergo great tension.

michelin mfs case study

We will have to reconfigure everything, and this will take time. Difficulties went well beyond the contracting phase.