I believe the company did the right thing to try to use the DOW brand as a Halo around a commodity business and create a lower cost structure for the commodity business. Xaimeter initial product range was products from the from Dow Corning The current pricing model was based on a high-priced innovative product and service package. Indian elevator market growth is very promising in the timeframe, which is when this case study takes place. You are commenting using your Google account. With the BMC, you can apply design thinking to the innovation of a business model. One question is whether Western HQ companies can ever build the lowest cost structure for a commodity business.

Fill in your details below or click an icon to log in: This was value-based pricing. Conduct competitor analysis regularly and attack weak competitors before they become big players. 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. Top Executive Education Searches.

Xaimeter will continuously have to do a self-audit to determine its vulnerabilities and reinforces the weak areas.

This will also minimize price adjust administration thus more efficiencies. Dow Corning had to thus try different segmentation variables, alone and in combination to find the best way to view the market structure.

The amazing part of Xiameter, however, is that Dow Corning distrupted itself. Overshooting is a key sign of a market ready for disruption.

Xiameter Case Study: Adding Business Model Innovation

Advantages and Disadvantages of Decentralized. Tim Kastelle Student and teacher of innovation – University of Queensland Business School – links to academic papers, twitter, and so on can be found here. Here is how Phillips discussed this: Corning have been selling product at premium price for their innovative value add of their products.


By going after segments instead of the whole market, companies have a better chance to deliver value to the consumer and receive maximum rewards. Thanks for quenching our curiosity. This evidently, resulted in higher product sales and a stronger positioning, and a greater market share within each market segment. Dual brand offers some advantages.

In addition to their skill at product and service innovation, the development of Xiameter casw a business model innovation competence as well. 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.

Read Xiameter industrial marketing case study uploaded seperately assuming – Essay – words

The Innovation Matrix is a tool for you to evaluate where you currently stuvy, but more importantly, it is there to help you figure out how to get to where you want to go. Dow Corning was a pioneer producing fit for purpose market leading products.

xiameter case study analysis

They had to develop a fundamentally lower price structure with standardize service Differentiation and positioning Dow Corning, despite being market leader could not sustain differentiation on pricing. There is also the threat that competitors will very soon catch on to web-based offering that was xiametdr by Dow Corning. I reserve the right to delete comments that are offensive or off-topic. I have no association with or interest in either Xiameter or Dow Corning, nor do I have first-hand knowledge of their business models and thier success.

The marketing environment comprises the microenvironment as well as the macro environment. Xiameter first mover advantage was starting to erode according to some pessimists, we need review current marketing plan, and chart a future for the business.


And over time, this approach can be dangerous.

Xiameter by Emily Mannix on Prezi

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Which explains the big picture better?

Business Model Design: Disruption Case Study

Silicon is durable enough for long lasting uses in the construction industry, yet can anaysis gentle enough for uses in the healthcare and medical devices.

Seven causes of initiative overload and a step-by-step process to guide leaders how to solve it. Dow Corning has been pioneers in the stjdy of silicones for commercial uses for the last 80 years, founded as a joint venture between Dow Chemical Company and Corning Glass.

Leniency must be instituted on the order penalty system. Product xiameeter managers oversee product category platforms, determining where products are in the life cycle and deciding which products fall under which brands, all with an eye to balancing capacity and brand mix to maximize overall profitability. One question is whether Western HQ companies can ever build the lowest cost structure for a commodity business. A new business model often requires a standalone division.

Big companies have some significant advantages in building new business models — in particular, they have the resources to do so.

xiameter case study analysis