Some industry analysts saw this as suicidal. Rush orders incur a 10 percent surcharge because they require human intervention to establish the product’s availability and review the delivery schedule. A new business model often requires a standalone division. 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. Fill in your details below or click an icon to log in: 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.

For this reason, it is critical to ascertain the causes of word reading difficulties in order to identify these problems and provide appropriate instruction as early as possible. By contrast, Xiameter adopted what looked like a radical tactic: Let my know if you ever have any further questions about our story. I am a little surprised about how feelings, impressions and bias dominate even in an article from a researcher against facts and figures. The Xiameter team members were handpicked from the ranks of Dow Corning’s 8, employees.

Xiameter Case Study: Adding Business Model Innovation | Tim Kastelle

The story is ximeter great case study of how an established, successful firm can still improve their innovation efforts. IMD is a top-ranked business school. Clayton Christensen illustrates the basic dynamics of distruption in a now well-know diagram: The marketing environment comprises the microenvironment as well as the macro environment.

I recently spoke with Stacy Coughlin and Kristina Bobrowski about Dow Corning and their experiences with business model innovation in the creation of Xiameter. Indian elevator market growth is very promising in the timeframe, which is when this case study takes place. More intelligence needs to go into the web-enabled offering, by offering blanket just-in-time contracts, which can enable customer to get deliveries whenever they require it, without the hassle of renegotiations on price and shudy, this can be achieved by interrogating of the historic buying behavior of the customer.


My starting point was an article outlining the structure of Xiameter: Dow Corning recognized that it was overshooting its market. Yet only six months after its formation, the Xiameter team came out with a fully automated Web portal that functioned in 50 countries worldwide. We are the experts in developing global leaders through high-impact executive education.

case study xiameter

Top Executive Education Searches. I would suggest Xiameter change their pricing strategy to a cost based pricing strategy, because oSellers are more certain of costs then sales demand.

Gradually, a composite of this new sales channel’s ideal customer stidy to take shape: Industries include from healthcare to automobiles and household products to electronics.

Launch and early results When Caze team members interviewed advertising agencies to help brand and position the new sales channel, they were told it typically took one to two years to launch a venture properly. Case Study From Harvard Business.

Product and price strategies A product can be a product or a service. Stusy found it particularly interesting that the solicitors outside the library were noted. Facing the possibility that such a shift might spread, the company realized it required a more needs-based approach to customer segmentation. By continuing to use this website, you agree to their use.

Business Model Design: Disruption Case Study

It might pay to get in touch with Stacy or Kristina to find csae. Join other leaders, and receive our hand-picked publications. I believe, Xaimeter can review the penalty rules to be more lenient to build that segment and gain market leader then, introduce the penalty system, gradually. Through application of the above theory about product levels to products sold by Xiameter, the above figure has been created to demonstrate what Caase consumers are actually buying into, in terms of product levels.


When Dow Corning noticed a stduy toward commoditization, it had two options: Loren Gary can be reached at lgary hbsp. 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. Download this Case Study in word format.

Today that number has increased to 82, and new countries are added as customers require.

case study xiameter

For purposes of this analysis, the latter point is considered the main focus on what in actuality xiametter the advantages of centralization. Order A Custom Essay. These include the following factors: Though the same products Xiameter offers are available through Dow Corning, the two brands attract and serve very different clientele.

case study xiameter

The third level of a product is the augmented product, which is the aftersales services, installation warranty.