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Michelin Case Study : Michelin Company

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Michelin Case Study Review
From Selling Tires to Selling Kilometers
Alex Fahrenbruch
Embry-Riddle Aeronautical University Abstract
This paper will discuss how Michelin transitioned from a production company to a service company. It will compare the differences in business models, the envisioned impact this would have on the company, what driving factors led Michelin to offer solution services, what difficulties were encountered, and a recommended course of action for Michelin’s service offering. Michelin is a leader in the international tire industry and in 2000, created a tire-management solution for large European transportation companies called Michelin Fleet Solutions. Upon launching this Michelin Fleet Solutions, Michelin developed a new business model that was vastly different the standard business model that had been under operation for many years. This business model envisioned many of the pros of starting this service solution but neglected to show the detriments. This led to difficulties within and out of the company a consulting firm was hired to help mitigate issues that had arisen. A decision must be made on whether Michelin should continue to pursue Michelin Fleet Solutions or not. Introduction In the year 2000, Michelin began an endeavor, Michelin Fleet Solutions, to offer a comprehensive tire-management solution for large European transportation companies (Zeithaml, 2013, p. 549). Michelin wanted to include a service and solution industry

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