Gradually, a composite of this new sales channel’s ideal customer began to take shape: It is a corporation constructed on more than thirty-five years of novelty and proficiency in the healthcare industry to grow into the largest and the most paramount care provider. I combed the text for the 9 elements of the BMC, jotted them down on paper, and then entered them into the canvas. My big take-away from this exercise is in the power of visualizing and diagramming all of these elements. Although Dow Corning does not divulge sales and earnings figures by product, Fillmore says that Xiameter experienced double-digit growth in its first year of operation and that its contribution to Dow Corning’s overall financial health has been “very favorable. The elements on the right side represent customer-facing aspects. Many firms do not recognise that a business model exists at a point in time — and, like all complex systems, every time you act in the market you perturbate the system and a new configuration of the business model emerges.
By contrast, Xiameter adopted what looked like a radical tactic: I believe the company did the right thing to try to use the DOW brand as a Halo around a commodity business and create a lower cost structure for the commodity business. Fill in your details below or click an icon to log in: Facing the possibility that such a shift might spread, the company realized it required a more needs-based approach to customer segmentation.
We are distributors of Dow Corning in spain and all this is a great info! Xiameter’s brand, on the other hand, serves the narrower market segment for which price is paramount. This is exactly the problem that Dow Corning avoided by undertaking this initiative.
Xiameter Case Study: Adding Business Model Innovation
Rush orders incur a 10 percent surcharge because they require human intervention to establish the product’s availability and review the delivery schedule. Here is how Jeffrey describes the advent of Xiameter:. Industries include from healthcare to automobiles and household products to electronics.
But there are several factors at play here. Cite This Case Study: Another example might be a skin-care company that wanted help creating a nongreasy lotion that stayed on the siameter longer.
Dynamics are critically important — even if you are just executing a currently successful business model with increasing efficiency, you are rarely standing still. xtudy
Many firms do not recognise that a business model exists at a point in time — and, like all complex systems, every time you act stufy the market you perturbate the system and a new configuration of the business model emerges.
By going after segments instead of the whole market, companies have a better chance to deliver value to the consumer and receive maximum rewards. To date, however, Xiameter has been a clear winner: If it can reduce it cost by creating an efficient delivery channel that can service customer with reliable good quality products.
Small-volume purchasers do not qualify for Xiameter’s cut-rate prices; xiamefer must buy directly from Dow Corning or through a local distributor.
Dow Corning’s Big Pricing Gamble – HBS Working Knowledge – Harvard Business School
IMD is a top-ranked business school. Your information has been modified successfully. You are commenting using your WordPress. Dow Corning had to thus try different segmentation variables, alone and in combination to find the best way to view the market structure. First, it had very clear support at the CEO level, and this was reinforced by the allocation of resources — people, time and money.
Dow Corning segmentation was based on 6 industries which sold to their customers within the industry segment from healthcare to automobiles, from household products to electronics.
Welcome to the world of case studies that can bring you high grades! There is also the threat that competitors will very soon catch on to web-based offering that was pioneered by Dow Corning. With Dow Corning already the cae player, buyers associate with the same level of quality, innovation and development.
As the Xiameter case study article shows, Dow Corning seems to have recognized overshooting: How about receiving a customized one? While no silver bullet, the BMC and alignment diagrams can help bring clarity. Recommendations Xaimeter being a sub brand of Dow Corning, I will assume as the market leader in the silicone based market, they currently have the competitive advantage by offering great value to it consumers using lower prices and other instances providing high quality value added services.
Thus, Xiameter’s expansion is predicated on maintaining a sharp distinction between the brands through needs-based customer segmentation.
The above analysis is based solely on the text in the article cited. You are commenting using your Google account.