For additional copyright information, please contact IMD's Information Center Copyrights Services. Enjoy low warehouse prices on name-brands products delivered to your door. TNT, Geodis, or Norbert Dentressangle. This seemed such a good idea to begin with. Licence d'utilisation accordée à : ECOLE CENTRALE - SUPÉLEC, Michelin Fleet Solutions – From selling tires to selling kilometers, On this gloomy day of January 2003, Jonas Pills hurried to take a cab in Clermont, Michelin’s headquarters, in downtown Clermont. L'ensemble des droits liés à la licence d'exploitation sont détaillés dans les Conditions Générales de Ventes. This case investigates the difficulties that industrial groups face when they transition from selling products to providing service. This decision moves the strongly product-driven firm into the new world of services and solutions. By Wolfgang Ulaga, Professor Frédéric DalsaceFrédéric Dalsace and Chloé Renault. Michelin is also rethinking the way fleets might purchase tires – approaching them almost like a service rather than a product. With this new business model, the company ventured into selling kilometers - instead of selling tyres. About Michelin solutions Michelin solutions is Michelin’s newest business, founded in 2012. Michelin Fleet Services (MFS), also nicknamed the TK business model (Ton-Kilometre), first started in 2001. Michelin solutions is dedicated to designing, developing and commercialising solutions … They, immediately discussed the most recent German sales figures. Contact MICHELIN Fleet Solutions by email or call 1-855-MFS-TIRE … In order to browse the collection and purchase copies please visit the links below. totaL•soLUtion Trusted Products Full range of tires, technologies and retreads with options for every fleet. Talk to a Goodyear® representative to learn more about how Endurance LHS tires can help your fleet save money. Search for publications, programs, event, people and much more... Business Model Change, Channel Relationship, Customer, Environment, Fleet Management, Product, Sales Force, Service Excellence, Services, Solution, Transition, Value. Not to. 1 Ulaga, Wolfgang and … A famous example comes from the Michelin Group which launched the Michelin Fleet Solutions (MFS) program in 2000. With Fleet … Michelin's investment comes four months after Goodyear Tire & Rubber Co. announced it would sell tires … This new business was specially created to design, develop and market innovative solutions beyond tires. Michelin solutions… Would Michelin pursue or abandon its solution business? HEC-M18L Michelin.pdf - HEC-M18L Michelin Fleet Solutions From selling tires to selling kilometers This case was written by Fr\u00e9d\u00e9ric DALSACE Wolfgang, HEC Paris, as a basis for class discussion rather than to illustrate either, effective or ineffective handling of a managerial situation. is a platform for academics to share research papers. A fleet can check how tread depth fares between LRR tire brands fairly easily. This radical move was initiated in 2000 with promising growth. - ne pas communiquer ou céder tout ou partie du produit à un tiers n'enseignant pas dans l'établissement acquéreur, - conserver le(s) logo(s) ou marque(s) cité(e)(s) dans le produit. Eureka Forbes Ltd.: Managing the Selling Effort (A) (Photonovel Version) Case Solution, EFL CEO (India) a direct sales organization must decide what changes in sales compensation systems would best motivate sales representatives and improve th ... From selling tires to selling kilometers … Michelin solutions has been operational in Europe since May 2013 and will be deployed in North America, South America and China in 2014 and 2015. Ltd South Beach Tower 38 Beach Road #17-11 Singapore 189767, IMD Chemin de Bellerive 23 PO Box 915 CH-1001 Lausanne Switzerland Tel: +41 21 618 01 11 [email protected], Copyright © 2006-2021 IMD - International Institute for Management Development. Case study –From selling tires to selling kilometers! - A global presence. offering transportation companies, comprehensive tire fleet management solutions. The Chinese study assumes an average annual vehicle distance of 12,000 kilometers per year; but expanding this out to … The concept is innovative: tyres are not sold but rented to large companies; … be used or reproduced without the permission of the owner. - L'établissement acquéreur est autorisé à diffuser le produit pédagogique à l'ensemble de son corps professoral dans le cadre de ses enseignements. The new offering was targeted at large European transportation companies such as Schenker. IMD case studies are distributed through case clearing houses. My Tire Guys came on time for the scheduled appointment, and had the job done in about 30 … would undoubtedly be decisive for MFS’s future. * Complete Tire … MFS’s future critically depended upon its ability, to succeed in this key market. 2.4 - Michelin Case Study final Middleton, Université de Lausanne • ECONOMICS MS-100121, University of Washington • FINANCE MGMT524, Embry-Riddle Aeronautical University • EMGT 514. All rights, including copyright, pertaining to the content of this website/publication/document are owned or controlled for these purposes by IMD, except when expressly stated otherwise. What kind of business model reconfiguration does it imply? “Maintaining correct inflation pressure levels is one of the most effective methods a fleet … Michelin Fleet Solutions: From selling tires to selling kilometers Case Solution, Problem Statement A comprehensive tire management solution was launched by Michelin in the year 2000 called as Michelin Fleet Solutions … Typical of Michelin career paths, Jean had joined the company right after graduating as an. What's industrial groups' rationale for moving towards solutions? Michelin’s tires were traditionally priced at a premium and the idea was to create a value-added service for large vehicles fleet … Chevrolet Bolt EV fitted with prototype airless tires from Michelin. In 2000, Michelin made a giant leap by expanding its remit from solely being a manufacturer of tires to becoming a service provider through the launch of the Michelin Fleet Solutions (MFS) [3]. After five years as a regional sales manager, Jonas had been, appointed a year ago as Manager in Germany for the deployment of Michelin Fleet Solutions (MFS). With MFS, Michelin had moved from its traditional business of, manufacturing and selling tires toward the new world of service, i.e. It currently employs around 900 people globally and is responsible for in excess of 310,000 vehicles currently on contract. With this new business model, the company ventured into selling kilometers - instead of selling tyres. Michelin launched Michelin Fleet Solutions to offer transportation companies comprehensive tyre management solutions for their fleets of vehicles over a … One way a fleet can reduce tire expense is through proper tire maintenance, which plays a critical role in optimizing performance benefits throughout a tire’s lifecycle. However, three years later, the picture had become much darker: despite substantial investments, geographic expansion was still poor and MFS remained unprofitable. 3-5 year complete tire management so buyers gain 1. peace of mind w/mo fixed payment based on km's 2. better control costs (unseen breakdowns) 3. benefit from Michelin's continuous innovation Michelin … 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 Featured case - Michelin Fleet Solutions: From Selling Tires to Selling Kilometers | Instead of selling tires, Michelin started to transform towards an OSP by selling kilometers. Premier Service Network Industry-leading network of 2,300+ North American locations. A large part of what impacts tire trends is demand. This tire- management solution offer has been designed for large Euro- pean transportation companies like Schenker and TNT. Groupe Michelin has acquired a 40-percent stake in Allopneus SAS, a French Internet tire retailer, for 60 million Euros. While in the cab, he reflected upon his forthcoming meeting, at the French tire manufacturer’s offices. IMD retains all proprietary interests in its case studies and notes. The author may, have disguised certain names and other identifying information to protect, HEC Paris & Frédéric Dalsace, Wolfgang Ulaga, Chloé Renault. perspectives. Box 915 CH-1001 Lausanne, Switzerland, IMD SE Asia Pte. Needed new tires for my camper, but didn’t want to spend half a day towing it back and forth to a tire place. Goodyear Tire has launched Fleet Central to help fleets maximize efficiencies for their tires, one of their largest maintenance expenses. Variability in tire performance, irregular purchase costs and unpredictable damage rates lead to swings in costs that may have negative effects on your cash flow. This preview shows page 1 - 3 out of 14 pages. Abstract 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). Michelin solutions … Michelin – selling kilometers not tires The Michelin Fleet Solutions2 case study allowed participants to delve into the challenges of selling and implementing complex solutions. Today. With this new introduction the company aimed on selling not just tires … Clearly, drastic steps, As he entered the building, Jonas met Pierre Dupuis, Michelin Fleet Solutions Director in Europe. With this new business model, the company ventured into selling kilometers - instead of selling tyres. The, situation had deteriorated to a point where International Strategy Consulting (ISC – name disguised), a well, known consulting firm, had been appointed a few months earlier to help fix the problem. Michelin launched a comprehensive tire-management solution for large European transportation companies and it was named as Michelin Fleet Solution (MFS). The new interactive portal allows fleets to purchase tires, activate service and gain unparalleled insight into their tire program – all in one place. 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). … de Bellerive 23 P.O. How does moving to solutions raise multiple challenges throughout the organization (eg in terms of sales force management, risk management, channel relationships etc). Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. fleet operators and auditors, business support teams and the Michelin solutions solutions center. Michelin solutions is part of the Michelin group and was established in May 2013. New division for services under Euro sales director. “We do not sell rubber, we sell kilometers,” Bourrat said. To request such permission and for further inquiries, please contact IMD at, Global Center for Digital Business Transformation. Shop for electronics, computers, furniture, outdoor living, appliances, jewelry and more. Course Hero is not sponsored or endorsed by any college or university. Three months after selling 27 Tire Centers stores to an independent tire dealer in the southeastern U.S. Michelin North America is planning to sell more of its TCi locations. It enables participants to reflect on the following issues: Business Model Innovation: Michelin Fleet Solutions - From Selling Tires To Selling Kilometers. The … Michelin Fleet Solutions – From selling tires to selling kilometers HEC ‐ M18L Michelin Fleet Solutions From selling tires to selling kilometers On this gloomy day of January 2003, Jonas Pills hurried to take a cab in Clermont ‐ Ferrand airport to reach Michelin’s headquarters, in downtown Clermont. Contact our Knowledge Center for additional information on IMD publications, IMD's selection of case studies on business to business, Ch. They met Jean Baudriard, who was the European Director of the Truck and Buses, (TB) Division. 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