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Xiameter also helped Dow Corning increase their Innovation Competence. Asad, the real issue here is we do not know what would have happened to revenue and profits absent the new business model. Dual brand offers some advantages. To meet their needs—and to keep them from migrating to other, less-expensive providers—Dow Corning would have to devise a radically lower cost structure that would allow it to profit solely from selling products. The environment around Dow Corning was changing. They were no longer looking to us to help discover ways that these fluids could solve new technical problems.

We are the experts in developing global leaders through high-impact executive education. This is actually kind of mind-boggling. Dow Corning recognized that it was overshooting its market. I therefor suggest that the pricing strategy should be based on cost-based pricing and not market based pricing. Notify me of new comments via email. Constantinos Markides has written about this too — and he outlines the factors that lead to success in new unit spinouts designed to support new business models.

Much of the cost in a business, the company reasoned, is associated with offering customers flexibility and choice around such issues as methods of ordering, order size, order-to-delivery lead time, and shipping and payment terms. Thanks for sharing Tim. 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. TESLA becomes a model for sustainable leadership: While no silver bullet, the BMC and alignment diagrams can help bring clarity.

Overshooting is one of the first signs of a market ready for disruption. Email required Address never made public.


Xiameter Case Study: Adding Business Model Innovation

The market itself is highly fragmented for elevators in India. Thanks to this careful delineation of Xiameter as a sub-brand of the overall Dow Corning brand, Xiameter’s creation has not caused conflict with Dow Corning’s existing channel partners. There definitely appears to have been concern internally about the potential of Srudy to cannabilise the core Dow Corning customers.

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. This was value-based pricing.

case study xiameter

The marketing environment comprises the microenvironment as well as the macro environment. Customer paid premium prices for the innovative high quality product that included value add services like customized application testing, training custom blending packaging and recycling.

Disclosure of Material Connection: Looking for something specific? In this way the studu can identify any advantages or disadvantages it has.

Let my know if you ever have any further questions about our story. Here is how Jeffrey describes the advent of Xiameter:. To succeed over time, you have to risk cannabilisation.

case study xiameter

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. The fear of self cannibalization is extremely difficult to overcome in most companies, particular those as large and traditional as Dow.

Dow Corning’s Big Pricing Gamble

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. This is actually kind of mind-boggling. Its existing business model, which emphasized selling technical assistance and product testing on top of its core products, ignored price-conscious customers.


Dow Corning has more than 7, offerings, but the Xiameter portal sells just items. The Innovation Matrix is a tool for you to evaluate where you currently are, but more importantly, caase is there to help you figure out how to get to xiameher you want to go. Channel partners, by their very nature, provide tailored offerings that better meet customer needs. Top Executive Education Searches.

Xiameter by Emily Mannix on Prezi

The mission statement of Corizon Health clearly outlines that it is a company, which over the years, has put itself together on. The innovation and R;D must definitely proceed, to produce high quality products. 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.

case study xiameter

Fill in your details below or click an icon to log in: Xiameter xaimeter strip down and changed the augmented product level to fulfill the needs specifically for the price seeker segment, who wanted the lowest price and not all the services and support.

Here is how Phillips discussed this: