It might pay to get in touch with Stacy or Kristina to find out…. If your product provides sufficient value to customers, they will buy — no matter how good or bad the economic situation is, if they perceive value they will pay the price. Xiameter provide superior value by leading the industry in pricing and convenience. The business model change was necessitated by the growing commoditization of the business — demanding a lower cost structure. The third level of a product is the augmented product, which is the aftersales services, installation warranty. Dual brand offers some advantages. No company has the resources to cater for every customer in every market.

First, Xiameter was introducing a business model to serve unserved or underserved customers who had chosen not to interact with the existing business model, so they were additive to the customer base. There is also the threat that competitors will very soon catch on to web-based offering that was pioneered by Dow Corning. Dow Corning recognized that it was overshooting its market. Turning The Tables On Disruption. Facing the possibility that such a shift might spread, the company realized it required a more needs-based approach to customer segmentation. Managing this issue is very tricky.

Based on all the evaluation and analysis completed in the self-audit as well as the industry knowledge of the strong sales force, the key differentiators is brand image and history, excellent high quality products, product mix over several large industries.

Advantages and Disadvantages of Decentralized. Xiameter’s stripped-down, no-frills approach was intentionally designed to serve a different market segment than the one the channel partners serve.

Similarly, there is a service fee for orders placed studyy phone or through regular mail to cover the additional personnel involved.

Research and knowledge from IMD business school

Though the same products Xiameter offers are available through Shudy Corning, ccase two brands attract and serve very different clientele. In this case, and I suspect in many cases, business model innovation expands the pie and attracts new customers.


There are still issues here. A customer can place an order, then receive acknowledgement of that order, confirmation of shipment, and an electronic invoice without having to interact with a Xiameter employee. This meant that as specific studh matured, the priorities of clientele within them shifted from wanting help with innovation to wanting to keep costs low. They reviewed their segmentation to a needs-based segmentation scheme. See also the article Paul Kahn and I co-authored on alignment diagrams: Do you want to save your changes?

There is also the threat that competitors will very soon catch on to web-based offering that was pioneered by Dow Corning.

Xiameter Case Analysis Advantages of Needs-Based Vs.&nbspCase Study

A breakthrough is the next, biggest, better product or service in an existing market. The Innovation Matrix is a tool for you to evaluate where you currently are, but more importantly, it is there to help you figure out how to get to where you want to go.

This meant that as specific products matured, the priorities of clientele within them shifted from wanting help with innovation to wanting to keep costs low.

Those resources, processes and functions that require consistency, durability, economies of scale and optimized operating costs Hess, are best centralized as collectively an experience effect, much like a learning effect associated with economies of scale, begins to influence costing, timing, and overall efficiencies of completing these core process tasks.

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Thanks for sharing Tim. The inability to integrate back-end data is preventing them from achieving economies of scale — and this is one of the keys to successfully implementing the multiple business model stusy.


case study xiameter

They knew exactly how they wanted to use the fluids. IMD provides leadership training such as: Leniency must be instituted on the order penalty system. Kay Plantes and Jeffrey Phillips have also written excellents posts on this case after speaking with Stacy.

case study xiameter

Here is how Phillips discussed this: The design proposal of this report is very straightforward in purpose and procedure, and is complete in its scope. I would suggest Xiameter change their pricing strategy to a cost based pricing strategy, because oSellers are more certain of costs then sales demand.

Second, Xiameter is more than willing to co-exist with a high-touch, high service business model that Dow Corning provides. Channel partners, by their very nature, provide tailored offerings that better meet customer needs.

Xiameter Case Study | Case Study Template

Everything else except sales and marketing — in other words manufacturing, governance, sustainability and C-level management resources — is shared by the two brands. Xiameter’s brand, on the other hand, serves the narrower market segment for which price is paramount.

Big companies have some significant advantages in building new business models — in particular, they have the resources to do so. Czse are commenting using your WordPress.

Initially this segmentation worked for Dow Corning, in my opinion due to the marketing department per industry, they obviously did not see they should revisit sstudy segmentation.