Michellin Case Study Essay

Words: 7241
Pages: 29

Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
Order reference F258708
CoursePack code C-589-202004-STU

Michelin Fleet Solutions
From selling tires to selling kilometers
Case Abstract
Michelin, a worldwide leader in the tire industry, launched in 2000 a comprehensive tiremanagement 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
…show more content…
With MFS, Michelin had moved from its traditional business of manufacturing and selling tires toward the new world of service, i.e. offering transportation companies comprehensive tire fleet management solutions. This radical move was initiated in 2000 with promising growth perspectives. The new offering was targeted at large European transportation companies such as Schenker, TNT, Geodis, or
Norbert Dentressangle. However, three years later, the picture had become much darker: despite substantial investments, geographic expansion was still poor and MFS remained unprofitable. 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. Clearly, drastic steps were required to keep MFS alive.
As he entered the building, Jonas met Pierre Dupuis, Michelin Fleet Solutions Director in
Europe. They immediately discussed the most recent German sales figures. MFS’s future critically depended upon its ability to succeed in this key market. They met Jean Baudriard, who was the European Director of the Truck and Buses (TB) Division. Typical of Michelin career paths, Jean had joined the company right after graduating as an engineer and had been working with Michelin for the past 30 years in various functions, including R&D, manufacturing, and sales. After a quick handshake, he immediately jumped to his main