xiameter case study

Xiameter: The past and future of a "disruptive innovation"

The case study is about a successful strategy formulated at Dow Corning for marketing commodity silicones, a chemical used in diverse applications. It deals with important issues in B2B marketing: refocusing on user needs and developing a “needs-based” segmentation of industrial customers; bundling and de-bundling of technical services; branding of commodity chemicals; web-based low price/no-frills value proposition; making money with commodities. The case also describes a “tipping point” in Dow Corning’s history and strategy where their leadership in the silicone business was at stake; management had to chart radically new ways to compete in commoditized markets–what they call their “disruptive innovation”. At the end the students are asked to look at the success of Xiameter (the company’s web-based brand) and decide its future. The choices are: maintain status quo; incrementally fine tune the strategy; go for a major overhaul.

The Xiameter case can be used to: 1) show an example of using customer insights in successfully re-defining business and marketing strategies; 2) address issues of segmentation, value proposition and branding in industrial marketing; 3) demonstrate how two contrasting value propositions could be offered to industrial customers under different brands; 4) discuss value innovation in B2B markets ; 5) examine and analyze elements of a successful web-based business model; 6) learn how adversity can challenge an organization to re-define its business and marketing strategies for future success.

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Tim Kastelle

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Xiameter Case Study: Adding Business Model Innovation

By tim kastelle.

I recently spoke with Stacy Coughlin and Kristina Bobrowski about Dow Corning and their experiences with business model innovation in the creation of Xiameter . The story is a great case study of how an established, successful firm can still improve their innovation efforts .

The story has been told by others pretty well already – Xiameter has been made into a Harvard Business Review case study authored by Clayton Christensen, Mark Johnson and Henning Kagermann.   Kay Plantes and Jeffrey Phillips have also written excellents posts on this case after speaking with Stacy.  Here is how Jeffrey describes the advent of Xiameter:

Traditionally, Dow Corning has provided silicone to a range of clients, but wrapped that product in a lot of information, service and support. It became evident to individuals within Dow Corning that a large segment of the potential customer base didn’t want or need anything except the silicone product itself, so Xiameter was launched to offer a radically different business model and distribution of the product to those customers who didn’t want, or need, the service or support associated with the sales and distribution by Dow Corning.

I won’t recap too many details of the case, but I’ll use it to make some points.  This is how the introduction of Xiameter changed Dow Corning’s position on The Innovation Matrix:

Prior to Xiameter, Dow Corning was a Fit for Purpose innovator .  They have been a market leader in the silicon industry since its inception – and their strategy was built around providing the best possible product.  Consequently, all of their innovation efforts were put into sustaining this market-leading position.  They had substantial investments in R&D, significant resources sunk into customisation for lead customers, and a high level of commitment to continuing to build market-leading products.

But at the end of the 1990s, they noticed that a large part of the market didn’t want or need this level of service and support.  For many applications, silicone was becoming a commodity.  The environment around Dow Corning was changing.

Xiameter was developed in response to this.

It represented an increase in Innovation Commitment in two ways.  First, it had very clear support at the CEO level, and this was reinforced by the allocation of resources – people, time and money.  Second, the economic investment was significant.

Xiameter also helped Dow Corning increase their Innovation Competence .  In addition to their skill at product and service innovation, the development of Xiameter built a business model innovation competence as well.  Also, this increased the scope of Dow Corning’s innovation portfolio – this was a clear Horizon 2 investment.

This case illustrates several important points:

The emphasis on the dynamic nature of a firms position is important, and often misunderstood. 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. It is simply too easy to conceptualise this once, and then stick with a fixed model until is is so disfunctional that you are in crisis mode.

This is exactly the problem that Dow Corning avoided by undertaking this initiative.

• A new business model often requires a standalone division. This has some interesting interplay with points raised by Ralph Ohr in his last post . Big companies have some significant advantages in building new business models – in particular, they have the resources to do so. 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 .

Product line 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. Everything else except sales and marketing – in other words manufacturing, governance, sustainability and C-level management resources – is shared by the two brands. “We also have a highly integrated SAP system utilized in real time, allowing us to offer two brands without adding operational costs, which also adds to efficiency” Coughlin notes.

Stacy made the point to me when I asked why the Xiameter model hadn’t been copied by competitors. Her response was that they were all running multiple instances of SAP. This is actually kind of mind-boggling. 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 strategy.

But there are several factors at play here. 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. Second, Xiameter is more than willing to co-exist with a high-touch, high service business model that Dow Corning provides. In this case, and I suspect in many cases, business model innovation expands the pie and attracts new customers. It does not have to be a zero sum game.

There are still issues here.  One is that Xiameter achieves its lowest total cost position by taking advantage of resources within Dow Corning, and this can have negative impacts on incentives within the parent firm.  Managing this issue is very tricky. But overall, the business model innovation undertaken by Dow Corning expanded their addressable market – it didn’t just replace existing customers with new ones.

Dynamics are critically important – even if you are just executing a currently successful business model with increasing efficiency, you are rarely standing still. And over time, this approach can be dangerous. Your market may be turning into a commodity as the silicon market was for Dow Corning.

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.   You can use it to plan the innovation moves that will transform your organisation.

Related articles

Student and teacher of innovation - University of Queensland Business School - links to academic papers, twitter, and so on can be found here.

Please note: I reserve the right to delete comments that are offensive or off-topic.

8 thoughts on “ Xiameter Case Study: Adding Business Model Innovation ”

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Thanks for sharing Tim. We are distributors of Dow Corning in spain and all this is a great info!

Enjoyed your insights and matrix.Dow Corning recently re-organized. Do you know what it was about or its impact on Xiameter?

Thanks Kay. I haven’t heard much about that. It might pay to get in touch with Stacy or Kristina to find out…

That model is a failure resulted in reduced cost but market share loss. This was also one of the reasons behind the new restructure (apart from new leaderships critical wrong decisions). This resulted in cutting off over 5-10% of employees worldwide (depends on whether you consider hemlock part of DC). I am a little surprised about how feelings, impressions and bias dominate even in an article from a researcher against facts and figures.

Asad, the real issue here is we do not know what would have happened to revenue and profits absent the new business model. The business model change was necessitated by the growing commoditization of the business – demanding a lower cost structure. The loss might have been far greater if all sales were through the more expensive structure. When you have a market with excess supply and there is little difference across competitors, cost reduction which unfortunately often means people cuts is very common. 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. One question is whether Western HQ companies can ever build the lowest cost structure for a commodity business.

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Business Model Design: Disruption Case Study

I’ve been working with Alexanders Osterwalder’s approach to business model generation  via the business model canvas (BMC) for a few years now. The canvas is straight forward to use, which is the beauty of it: you “get it” right away. But it does take some practice to identify and capture the various elements. It’s more of a craft than a science.

To sharpen my skills I decided to deconstruct the Xiameter business model and compare its parent, Dow Corning –just for fun. (You have the right to now say, “Get a life, Kalbach”). My starting point was an article outlining the structure of Xiameter: “ Dow Corning’s Big Pricing Gamble ” by Loren Gary. I combed the text for the 9 elements of the BMC, jotted them down on paper, and then entered them into the canvas.

The image below (Figure 1) shows my analysis using the iPad app for the BMC . The GREEN notes represent Dow Corning’s core business. The ORANGE notes show the Xiameter model. Interestingly, Xiameter seems to have had an effect back on the core business model, according to the article. These aspects are shown in BLUE notes.

Figure 1: Comparison of Dow Corning’s core business to Xiameter using the Business Model Canvas (Click to enlarge)

The new Xiameter channel is a textbook example of disruptive innovation . Clayton Christensen illustrates the basic dynamics of distruption in a now well-know diagram:

Figure 2: Clayton Christensens illustration of disruption

Dow Corning recognized that it was overshooting its market. Overshooting is one of the first signs of a market ready for disruption. Scott Anthony et al write about overshooting in The Innovator’s Guide to Growth :

At the heart of the disruptive innovation model is the concept of overshooting, that is, providing too much performance for a given group of customers. Remember, the model holds that companies innovate faster than people’s lives can change to take advantage of the advances those companies provide. As companies innovate, products or services that were previously not good enough become perfectly adequate; ultimately, they become too good for a given group of customers. (p. 65)

(See my full review of The Innovator’s Guide to Growth in a previous post ).

As the Xiameter case study article shows, Dow Corning seems to have recognized overshooting:

In the early 1990s, however, Dow Corning noticed an emerging trend toward commoditization in some of its markets. 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 change in what some customers valued—and the consequent decline in profit margins within those market segments—led Dow Corning to conclude that the basis of competition had shifted in parts of the industry. Facing the possibility that such a shift might spread, the company realized it required a more needs-based approach to customer segmentation. Its existing business model, which emphasized selling technical assistance and product testing on top of its core products, ignored price-conscious customers. 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.

Overshooting is a key sign of a market ready for disruption. But don’t confuse breakthrough innovation with disruption. A breakthrough is the next, biggest, better product or service in an existing market. It’s the fifth blade on a razor or the Airbus 380. Or, see Kohler’s numi toilets –another example of a breakthrough product design, with a heated seat, feet warming, music and a remote control. But by definition these aren’t disruptive.

Disruptive innovations are more convenient, cheaper and easier to use , generally targeting previously underserved market segments. Think: Flip video camera, eBay or Zopa (a peer-to-peer lending service), as well as Skype and Ryan Air as disruptions. Xiameter is also a disruptive innovation.

The amazing part of Xiameter, however, is that Dow Corning distrupted itself . The fear of self cannibalization is extremely difficult to overcome in most companies, particular those as large and traditional as Dow. And that fear is precisely what causes the innovator’s dilemma. Dow overcame this fear and didn’t let entrants take that piece of their pie, as the chart above (Figure 2) show what usually happens.

My big take-away from this exercise is in the power of visualizing and diagramming all of these elements. Go read the article article that I reversed engineered ( Here’s the link again –opens in new window); then come back here and compare what you read to the diagram.

Which explains the big picture better? Don’t get me wrong: the author of the article writes well, and it’s a clear story he tells. But you don’t get nearly the same sense of interlocking dependencies and overall logic you get from the text as you do from the canvas.

More importantly, the BMC let’s you design your business . You can quickly “sketch” multiple directions or variations. If they don’t work out, crumple it up and go back to the drawing board. That’s the power of it: iterative prototyping. With the BMC, you can apply design thinking to the innovation of a business model. It’s a far better better way than trying to detail a model out in text-based report or description.

Visualizing abstract business concepts really helps solve problems. I’ve been beating that drum for the last year or so, ever since I gave a presentation on “Alignment Diagrams” at the Euro IA conference last year. (See also the article Paul Kahn and I co-authored on alignment diagrams: “ Locating Value with Alignment Diagrams “). Alignment diagrams are a class of document that includes such things as customer journey maps, service blueprints and mental model diagrams.

In a previous post, I suggest that the BMC is a type of alignment diagram . The elements on the right side represent customer-facing aspects. Alexander Osterwalder calls this the “front stage.” The fields on the left represent business-related aspects, or the “back stage.” In the middle is the “value proposition.” It’s this type of alignment between the back stage and front stage that’s often missing in business logic. While no silver bullet, the BMC and alignment diagrams can help bring clarity.

NOTE: I’m giving two workshops this year on alignment diagrams : 1. Alignment Diagrams, Euro IA, 22 Sept 2011, Pragu e (1/2 day workshop) 2. Alignment Diagrams, part of UX Fest, 3 Nov, London (Full-day workshop)

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About Jim Kalbach

James, I’ve been curious what our business model would look like deconstructed into Alexander’s Business Model Canvas. Thanks for quenching our curiosity. We’ve had great success with our dual-brand strategy of Dow Corning and XIAMETER brand and have not seen cannibalization to ourselves, only growth of the company as a whole.

Thanks and great post! Let my know if you ever have any further questions about our story.

-Kristina Bobrowski from XIAMETER brand @xiameter

Glad you liked it, Kristina. Thanks for confirming that XIAMETER is still bringing growth to the company. It’s quite a fascinating story–one that many companies would have a hard time reproducing.

– Jim

That’s what we’ve found Jim. Happy to chat with you more about it anytime!

-Kristina from XIAMETER brand

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Xiameter The Past and Future of a Disruptive Innovation Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Xiameter The Past and Future of a Disruptive Innovation Case Solution

The Xiameter The Past and Future of a Disruptive Innovation case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Xiameter The Past and Future of a Disruptive Innovation case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Xiameter The Past and Future of a Disruptive Innovation case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Xiameter The Past and Future of a Disruptive Innovation case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Xiameter The Past and Future of a Disruptive Innovation Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Xiameter The Past and Future of a Disruptive Innovation is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Xiameter The Past and Future of a Disruptive Innovation HBR Case Study

The objective of the case should be focused on. This is doing the Xiameter The Past and Future of a Disruptive Innovation Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Xiameter The Past and Future of a Disruptive Innovation

An important tool that helps in addressing the central issue of the case and coming up with Xiameter The Past and Future of a Disruptive Innovation HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Xiameter The Past and Future of a Disruptive Innovation.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Xiameter The Past and Future of a Disruptive Innovation Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Xiameter The Past and Future of a Disruptive Innovation

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Xiameter The Past and Future of a Disruptive Innovation operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Xiameter The Past and Future of a Disruptive Innovation

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Xiameter The Past and Future of a Disruptive Innovation case solution.

VRIO Analysis of Xiameter The Past and Future of a Disruptive Innovation

This is an analysis carried out to know about the internal strengths and capabilities of Xiameter The Past and Future of a Disruptive Innovation. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Xiameter The Past and Future of a Disruptive Innovation are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Xiameter The Past and Future of a Disruptive Innovation

The Value chain analysis of Xiameter The Past and Future of a Disruptive Innovation helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Xiameter The Past and Future of a Disruptive Innovation to increase its competitive advantage.

BCG Matrix of Xiameter The Past and Future of a Disruptive Innovation

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Xiameter The Past and Future of a Disruptive Innovation BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Xiameter The Past and Future of a Disruptive Innovation

Ansoff Matrix is an important strategic tool to come up with future strategies for Xiameter The Past and Future of a Disruptive Innovation in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Xiameter The Past and Future of a Disruptive Innovation

Xiameter The Past and Future of a Disruptive Innovation needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Xiameter The Past and Future of a Disruptive Innovation Blue Ocean Strategy

The strategies devised and included in the Xiameter The Past and Future of a Disruptive Innovation case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Xiameter The Past and Future of a Disruptive Innovation

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Xiameter The Past and Future of a Disruptive Innovation looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Xiameter The Past and Future of a Disruptive Innovation.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Xiameter The Past and Future of a Disruptive Innovation Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Xiameter The Past and Future of a Disruptive Innovation case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Xiameter The Past and Future of a Disruptive Innovation Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Xiameter The Past and Future of a Disruptive Innovation case answers should be written down in the Xiameter The Past and Future of a Disruptive Innovation case memo, clearly identifying which part shows what. The Xiameter The Past and Future of a Disruptive Innovation case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Xiameter The Past and Future of a Disruptive Innovation HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Xiameter The Past and Future of a Disruptive Innovation is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Xiameter The Past and Future of a Disruptive Innovation Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Xiameter The Past and Future of a Disruptive Innovation Harvard case is complete and properly answered.

Recommendations and Action Plan for Xiameter The Past and Future of a Disruptive Innovation case analysis

For Xiameter The Past and Future of a Disruptive Innovation, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Xiameter The Past and Future of a Disruptive Innovation should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Xiameter The Past and Future of a Disruptive Innovation should enhance the value creating activities within its value chain.
• Xiameter The Past and Future of a Disruptive Innovation should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

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Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

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Xiameter: the past and future of a "disruptive innovation" description.

The case study is about a successful strategy formulated at Dow Corning for marketing commodity silicones, a chemical used in diverse applications. It deals with important issues in B2B marketing: refocusing on user needs and developing a "needs-based" segmentation of industrial customers; bundling and de-bundling of technical services; branding of commodity chemicals; web-based low price/no-frills value proposition; making money with commodities. The case also describes a "tipping point" in Dow Corning's history and strategy where their leadership in the silicone business was at stake; management had to chart radically new ways to compete in commoditized markets--what they call their "disruptive innovation". At the end the students are asked to look at the success of Xiameter (the company's web-based brand) and decide its future. The choices are: maintain status quo; incrementally fine tune the strategy; go for a major overhaul. Learning objectives: The Xiameter case can be used to: 1) show an example of using customer insights in successfully re-defining business and marketing strategies; 2) address issues of segmentation, value proposition and branding in industrial marketing; 3) demonstrate how two contrasting value propositions could be offered to industrial customers under different brands; 4) discuss value innovation in B2B markets ; 5) examine and analyze elements of a successful web-based business model; 6) learn how adversity can challenge an organization to re-define its business and marketing strategies for future success.

Case Description Xiameter: The Past and Future of a "Disruptive Innovation"

Strategic managment tools used in case study analysis of xiameter: the past and future of a "disruptive innovation", step 1. problem identification in xiameter: the past and future of a "disruptive innovation" case study, step 2. external environment analysis - pestel / pest / step analysis of xiameter: the past and future of a "disruptive innovation" case study, step 3. industry specific / porter five forces analysis of xiameter: the past and future of a "disruptive innovation" case study, step 4. evaluating alternatives / swot analysis of xiameter: the past and future of a "disruptive innovation" case study, step 5. porter value chain analysis / vrio / vrin analysis xiameter: the past and future of a "disruptive innovation" case study, step 6. recommendations xiameter: the past and future of a "disruptive innovation" case study, step 7. basis of recommendations for xiameter: the past and future of a "disruptive innovation" case study, quality & on time delivery.

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Case Analysis of Xiameter: The Past and Future of a "Disruptive Innovation"

Xiameter: The Past and Future of a "Disruptive Innovation" is a Harvard Business (HBR) Case Study on Sales & Marketing , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Xiameter: The Past and Future of a "Disruptive Innovation" is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Xiameter: The Past and Future of a "Disruptive Innovation" case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Xiameter: The Past and Future of a "Disruptive Innovation" will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Xiameter: The Past and Future of a "Disruptive Innovation" case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Sales & Marketing, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Xiameter: The Past and Future of a "Disruptive Innovation", is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Xiameter: The Past and Future of a "Disruptive Innovation" case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Sales & Marketing Solutions

In the Texas Business School, Xiameter: The Past and Future of a "Disruptive Innovation" case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Xiameter: The Past and Future of a "Disruptive Innovation"

Step 1 – Problem Identification of Xiameter: The Past and Future of a "Disruptive Innovation" - Harvard Business School Case Study

The first step to solve HBR Xiameter: The Past and Future of a "Disruptive Innovation" case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Xiameter Bundling is facing right now. Even though the problem statement is essentially – “Sales & Marketing” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Xiameter Bundling, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Xiameter: The Past and Future of a "Disruptive Innovation". The external environment analysis of Xiameter: The Past and Future of a "Disruptive Innovation" will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Xiameter: The Past and Future of a "Disruptive Innovation" case study. PESTEL analysis of " Xiameter: The Past and Future of a "Disruptive Innovation"" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Xiameter: The Past and Future of a "Disruptive Innovation" macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Xiameter: The Past and Future of a "Disruptive Innovation"

To do comprehensive PESTEL analysis of case study – Xiameter: The Past and Future of a "Disruptive Innovation" , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Xiameter: The Past and Future of a "Disruptive Innovation"

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Xiameter: The Past and Future of a "Disruptive Innovation" ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Xiameter Bundling is operating, firms are required to store customer data within the premises of the country. Xiameter Bundling needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Xiameter: The Past and Future of a "Disruptive Innovation" has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Xiameter Bundling in case study Xiameter: The Past and Future of a "Disruptive Innovation"" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Xiameter Bundling in case study “ Xiameter: The Past and Future of a "Disruptive Innovation" ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Xiameter Bundling in case study “ Xiameter: The Past and Future of a "Disruptive Innovation" ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Xiameter: The Past and Future of a "Disruptive Innovation" ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Xiameter Bundling can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Xiameter: The Past and Future of a "Disruptive Innovation" case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Xiameter Bundling needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Xiameter: The Past and Future of a "Disruptive Innovation"

Social factors that impact xiameter: the past and future of a "disruptive innovation", technological factors that impact xiameter: the past and future of a "disruptive innovation", environmental factors that impact xiameter: the past and future of a "disruptive innovation", legal factors that impact xiameter: the past and future of a "disruptive innovation", step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: xiameter: the past and future of a "disruptive innovation" case study solution.

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What is Harvard Business School (HBS) Case Method

Harvard Business School (HBS) Case Method, a renowned approach to business education, using business case studies in the field of marketing, sales, leadership, technology, finance, enterpreneurship, human resources, and more .

Core Principles:

• Real-World Dilemmas: HBS cases delve into genuine business challenges faced by companies, exposing students to the complexities and uncertainties of real-world decision-making.
• Active Participation: Students are not passive recipients of knowledge. The case method emphasizes active participation through case discussions, fostering critical thinking and analysis.
• Developing Judgment: There are often no single “correct” answers in case studies. The focus is on developing sound judgment by weighing evidence, considering various perspectives, and making well-supported recommendations.
• Diversity and Collaboration: Diverse backgrounds and experiences enrich case discussions. Students learn from each other as they analyze the case from different viewpoints.

Structure and Implementation:

• Pre-Class Preparation: Effective case study learning hinges on thorough preparation. Students are expected to read and analyze the case beforehand, identifying key issues, conducting research, and formulating potential solutions.
• Case Discussion: The case discussion in class is the heart of the method. The instructor facilitates a dynamic discussion, encouraging active participation from all students.
• Open-Ended Questions: Instead of spoon-feeding answers, instructors pose open-ended questions that stimulate critical thinking and analysis.
• Cold Calling: The HBS method is known for its “cold calling” technique, where professors randomly call on students to respond, promoting active engagement and preparation.
• Socratic Dialogue: Instructors often employ the Socratic method, asking probing questions to challenge assumptions, encourage deeper analysis, and draw out student reasoning.

Benefits of the HBS Case Method:

• Develops Critical Thinking Skills: Grappling with complex business problems and analyzing diverse perspectives strengthens critical thinking abilities.
• Enhances Communication Skills: Active participation and clear articulation of ideas within case discussions hone communication skills.
• Sharpens Analytical Abilities: Students learn to dissect complex situations, identify key drivers, and weigh evidence effectively.
• Promotes Decision-Making Confidence: The case method fosters the ability to make well-reasoned decisions under uncertainty.
• Builds Leadership Skills: Active participation in discussions and persuasively advocating for solutions develops leadership potential.
• Prepares Students for Real-World Business: The case method equips students with the knowledge and skills to navigate the complexities of real-world business environments.

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Key Components of a Harvard Case Study Solution

Comprehensive Understanding of the Case

• Summary of the Case : Provide a concise summary that outlines the key issues, stakeholders, and objectives. This sets the stage for deeper analysis.
• Problem Identification : Clearly define the main problem or decision point that the case presents. This includes understanding the underlying causes and the broader business context.

Detailed Analysis

• Qualitative Analysis : Evaluate qualitative factors such as organizational culture, leadership styles, and market conditions. This helps in understanding the non-quantifiable aspects that impact the business scenario.
• Quantitative Analysis : Use data and financial metrics to analyze the business performance. This includes profit margins, cost structures, revenue streams, and other relevant financial indicators.
• SWOT Analysis : Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to provide a structured view of the internal and external factors affecting the business.

Strategic Alternatives

• Generation of Alternatives : Develop multiple strategic alternatives to address the identified problem. Each alternative should be feasible and align with the company’s goals and resources.
• Evaluation of Alternatives : Assess each alternative based on criteria such as cost, feasibility, impact, and alignment with the company’s strategic objectives. Use quantitative data where possible to support the evaluation.

Recommended Solution

• Selection of the Best Alternative : Choose the most viable solution from the generated alternatives. Justify the choice with clear, logical reasoning and supporting evidence.
• Implementation Plan : Develop a detailed implementation plan that includes steps, timelines, resources required, and potential risks. This ensures the recommended solution is actionable and practical.
• Contingency Plan : Outline a contingency plan to address potential challenges or risks that may arise during the implementation phase.

Reflection and Learning

• Lessons Learned : Reflect on the case study process and the key lessons learned. This includes insights into decision-making, strategic thinking, and the application of business concepts.
• Future Implications : Discuss the broader implications of the case study for the industry and future business scenarios.

Checklist for a Great Harvard Case Study Solution

Comprehensive Understanding

• Clearly summarized the case
• Identified the main problem and stakeholders
• Understood the broader business context
• Conducted qualitative analysis (organizational culture, market conditions, etc.)
• Performed quantitative analysis (financial metrics, data analysis)
• Completed a SWOT analysis
• Generated multiple feasible alternatives
• Evaluated alternatives based on relevant criteria
• Supported evaluations with data and logical reasoning
• Selected the most viable alternative with a strong justification
• Developed a detailed and practical implementation plan
• Created a contingency plan to manage potential risks
• Reflected on the case study process
• Identified key lessons learned
• Discussed future implications for the industry and business practices

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Xiameter Case Solution & Answer

Home » Case Study Analysis Solutions » Xiameter

 What did the new segmentation approach reveal about customers beyond that which the company already knew?Further…in what ways was this “needs-based” segmentation an improvement over their previous, traditional end-user segmentation approach?Discuss.

Since its inception, the companyremainedfocused on the existingcustomers, offering different products of silicones, depending on the market changes, or customer demand.In doingso, it indulged itself so deeply into the customer needs that it failed to address the changing market trends and the needs of the other markets.

Primarily, thecompanyfocusedon the west market and failed to incorporate the changes of Asian market in the marketing strategy of the company, which became one ofthe emerging markets, making the model of need-based approach more renowned.In such amodel, the customs demanded for the cost effective siliconproducts with highquality. Andsince the company failed to analyze such trend, the newentrants captured the market share, leading to immense loses.

Apart from this, it canbe said, on the launch of Xiameter, the company developed a new marketsegmentationapproach.In doing so, it segmented the market on the factors such as price seekers, cost effective solution seekers, innovative solutions segment and proven solution segment that needed different solutions and services, dependingon theneed.For instance, the proven solution segment needed the solution pack with drivenresults that merely don’t have substantial assets or financialsupportfor the research anddevelopment function.

On contrary, underthe end usersegmentation, the companypursued thestandardized approach toofferthe service to the customers. In doing so, it targeted the customers with similar needs anddemands andthus, offered the sameoffering throughout the segment, through same integrated channel. Though in initial, such approachremainedasuccess factor for the company, perhaps, in the latter year, such approach made the company overlook the other segment with emerging needs, leading to the entry of newplayers and hence loss of market share.

3- In tracing the development of Xiameter from its beginning, discuss what were the key decisions (in your opinion) that shaped its successful business model and strategy ?

The company initiated with the dual brandstrategy in order to incept the Xiameter in the market, whichhasbeen developed to target the cost effective and cost sensitive marketsegment. In doing so, according to my opinion, following are the decisions that the company took right and that allowed it to shape the businessmodelsandstrategyleadingto success.

• The Dow Coming adopted a dual brand strategy. Suchstrategyallowed it todevelop a separate brand strategy for the Xiameter, allowing it to refrain itself from cannibalizationof other existing products in the market.
• This allowed it to maintain a different and distinctbrandimage in the mind of the consumer, securing the brandvalue from deteriorating due to brandambiguityand offering in the market.
• In addition, the company made Xiameteranautonomousbusinessunit of the company, allowing it to develop its own strategies, business plan, objectives and management teams, leading to better execution andadaption to change.
• Also, the company adopted the website approach in order to pursue the Xiameter in themarket. Such strategy has been distinct, since no other businessplayer has beenoffering the silicone through such channel.Suchapproachallowed the companyto reduce its supply chain and logistic cost and alsohelped inmaintaining the orderstatus and ratio, depending on the ROI generated through each channelandthe demand criteria derived through the analysis of different market trends…………

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Executive Summary Silicon and silicon-based materials can be formulated to deliver unlimited range of uses. Silicon Is durable enough for long lasting uses In the construction Industry, yet can be gentle enough for uses In the healthcare and medical devices. DOD Corning has been pioneers In the development of silicone for commercial uses for the last 80 years, founded as a joint venture between DOD Chemical Company and Corning Glass.

They became a global leader in manufacturers of silicon-based products with a 40% worldwide market share.

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DOD Corning was a pioneer producing fit for purpose arrest leading products. Around late 1990 DOD Corning encountered major performance and financial losses, customers were defecting to low-priced suppliers which eroded DOD Corning’s volumes and margins. In 2001 after another dismal year and DOD corning not living up to Its capabilities and layoffs proved Inadequate, a fresh start was required. After numerous strategic deliberations DOD Corning decided on a dual brand strategy going forward, resulting In a ‘new business unit Clatter ‘a disruptive Innovation’ being formed.

Examiner flirts mover advantage was starting to erode according to some pessimists, e need review current marketing plan, and chart a future for the business. Introduction The purpose of this report is to investigate decisions that shaped the business model and marketing strategy, Interrogate the segmentation, discuss the product, pricing and competitive environment and possibly make recommendations to malting the current market share Cellmate Is enjoying. Slather’s present model was centered on high priced advanced products with high quality service offerings.

Customers Analysis Customers are spread worldwide in more than 80 countries within 6 concentrated industries, serving 25 000 customers with more than 7 500 products. Industries include from healthcare to automobiles and household products to electronics.

(Examiner Case Study) 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. Customer had long term relationships based on making DOD Corning Interest the customers Interest. Clatter Case Study) digit growth on unique products. In the late sass’s their healthy business performance came to an abrupt end. The main contributor was DOD Scorings’ marketing strategies have not change with the market (Examiner Case Study).

Marketing Environment The marketing environment comprises the micromanagement as well as the macro environment. Actors on the micromanagement affect the market directly, while actors on the macro environment affect the marketing environment indirectly.

The factors and decisions that shape the business model and strategy is depict in the micromanagement Political In all chemical manufacturing environments there are the challenges of environmental regulations as specified by the authorities, DOD Corning was no exception. Rising demand for “Green” projects, DOD Corning participate in the Responsible Care Program of the American Chemist Council (AC) Economic Global leader in silicone based product with a 40% worldwide market share, with its closest rival with only 26% market share.

DOD Corning achieved double digit growth in its initial years. Social All manufacturing, development and testing is conducted ethical and ecological friendly environment, as they are suppliers of silicone products within the healthcare industry Technological DOD Corning is innovative and produces high quality products supported by the Meany’s strong service offering.

This include customize application testing, training custom blending packaging and recycling and formulation.

They earned the reputation as the world’s inventive supplier of silicone products Competitive Environment Threat to new entrants Minor local players with no R and low overheads offered rock-bottom prices on silicone products to bulk customers Large global and regional rivals were boosting supply chain efficiencies, undercutting DOD Corning’s prices Power of suppliers Contamination trend from rival suppliers were denting DOD Corning’s financial reference Suppliers with no R could afford to sell at cheaper prices Bargaining power of Buyers Customers defecting to low-price suppliers Price seeker segment was at odds with DOD Corning’s’ core strengths Availability of Substitutes Cheaper imitator products flooded the market Competitive rivalry Regional, global and local players took advantage of the changing markets SOOT Analysts Herewith an extraction of the findings of the internal and external audits which draws attention to DOD Scorings strengths and weaknesses, opportunities and threats facing the company’. (Kettle et al. (p. 135)) STRENGTHS Constant Innovation Leadership in Poly-silicon Market Geographical Diversity Extensive Range of Offerings WEAKNESSES On-going Legal Proceedings 5 consecutive years of stagnation Same business model for the last 60 years Rising Demand for Green Projects Growing Applications of Semiconductors Expansion in Key Growth Markets New Product Launches THREATS Challenge of Environmental Regulations Shift in Technology Infringement of Intellectual Property Fig 02.

High-level SOOT analysis on DOD Corning The analysis indicate that the business model for Examiner was shaped based on the allowing factors The current customer analysis influenced specifically by the customers that defected to the competitors, The Competitive environment as illustrated using Porter’s Five forces model SOOT analysis, specifically the weakness where DOD Corning was bleeding cash on law suits and Stagnation performance for 5 years The company did not live up to its capabilities and that is bad for a market leader. Segmentation No company has the resources to cater for every customer in every market. By going after segments instead of the whole market, companies have a better chance to liver value to the consumer and receive maximum rewards.

Through market segmentation companies divide customers into groups, based on location, buying attitudes, needs buying practices in order to service customers’ needs efficiently and effectively with products and service for their unique needs. A marketer has to try different segmentation variables, alone and in combination to find the best way to view the market structure.

(Kettle et al, 2008) DOD Corning segmentation was based on 6 industries which sold to their customers within the industry segment from healthcare to automobiles, from household products to electronics. The company had their own marketing-, sales-, and technical service department per industry. (Examiner Case Study).

This is a typical ‘end-user segmentation approach. Initially this segmentation worked for DOD Corning, in my opinion due to the marketing department per industry, they obviously did not see they should revisit their segmentation.

The segmentation worked for 60 years, the problem is, the market then changed, their DOD Corning only used the single segmentation, of which the disadvantage is that they potentially overlooked buying behavior in another industry. “A task force concluded, the past segmentation did not fully address the ray different segmentation variables, alone and in combination to find the best way to view the market structure. (Kettle et al, 2008).

Despite companies segmentation practices, customers decide for themselves what their required needs are, once this was realized by DOD Corning, evident from their self-audit, and 5 years of customer surveys and discussions with sales force. They reviewed their segmentation to a needs-based segmentation scheme (Examiner Case Study). Target market The major advantage of the needs-based segmentation open a ‘new differentiated target market coverage strategy, DOD Corning could now target several market segments with separate value added offerings for each, if required.

This evidently, resulted in higher product sales and a stronger positioning, and a greater market share within each market segment. Product and price strategies A product can be a product or a service.

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 (Wood, 2010). All products consist of three levels, the most basic core product, which is the problem solving benefit the consumer seeking. The second level is called actual product which s the quality, branding, features etc. Of the product.

The third level off product is the augmented product, which is the aftertastes services, installation warranty. (Kettle et al. 2008). Fig 03. Three levels of a product Source: Kettle et al. 2008 Through application of the above theory about product levels to products sold by Examiner, the above figure has been created to demonstrate what Examiner consumers are actually buying into, in terms of product levels.

Examiner has 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 al the services and support. Examiner initial product range was 350 products from the 7500 from DOD Corning The current pricing model was based on a high-priced innovative product and service package. They had to develop a fundamentally lower price structure with standardize service Differentiation and positioning pricing. Based on all the evaluation and analysis completed in the self-audit as well as the industry knowledge of the 450 strong sales force, the key differentiators is brand image and history, excellent high quality products, product mix over several large industries.

Examiner is obviously adopting all these differentiators, but as a dual brand can introduce the pricing differentiator because of the “no-frills” offering. Branding Branding form part of the product mix.

Examiner have introduced “dual branding”, the standard DOD Corning brand and the “no frills” brand. Dual brand offers some advantages. Dual brand open ‘new untried segments in the silicone based market. With DOD Corning already the major player, buyers associate with the same level of quality, innovation and development. Of course there is the possibility of brand unbalancing where Examiner brand would over shadow DOD Scorings brand or the other way around.

It would also increase marketing cost. (Examiner Case Study).

Pricing Strategy Pricing is the major factor affecting buyer choice and also the most flexible marketing mix element, because it can be change quickly. (Kettle et al. 2008) DOD Corning have been selling product at premium price for their innovative value add of their products.

This was value-based pricing. Examiner on the other hand introduced market related pricing, by having the “no- frills products offering, being in a monopolistic market Examiner have to continually evolve differentiated offers to different customer segments to maintain market share. (Kettle et al, 2008) I believe, Examiner can review the penalty rules to be more lenient to build that segment and gain market leader then, introduce the penalty system, gradually. There are trying to serve a declining segment.

From the case study Examiner turnover has increased dramatically, but there is no indication of the profitability of the business. I would suggest Examiner change their pricing strategy to a cost based pricing strategy, because o Sellers are more certain of costs then sales demand.

Silicone prices are on the increase that would affect the margins on the entire market. O Cost-based pricing strategy will reduce daily adjustments, thus efficiency o it will minimize price competition, and it is fairer to both seller and buyer. (Kettle et al, 2008) There is also the threat that competitors will very soon catch on to web- based offering that was pioneered by DOD Corning.

Recommendations silicone based market, they currently have the competitive advantage by offering great value to it consumers using lower prices and other instances providing high quality value added services. To be able to maintain the market leader spot, the company needs to continually review on its close competitors’ information and compare its marketing strategies, products, prices and promotions. In this way the company can identify any advantages or disadvantages it has.

There are several things the market leader can do to protect its position. They can always fulfill their value promises; its price must remain consistent with the value of the brand and keep strong relationships. (Kettle et al, 2008) Examiner will continuously have to do a self-audit to determine its vulnerabilities and enforces the weak areas.

Like in the case of DOD Corning, the segmentation became suspect after 60 years of using the same segmentation. (Examiner Case Study) There is constant change in the market place and customers’ needs change accordingly therefore the market strategy must change as well. Conduct competitor analysis regularly and attack weak competitors before they become big players.

Examiner provide superior value by leading the industry in pricing and convenience. If it can reduce it cost by creating an efficient delivery channel that can service customer with reliable good quality products. Kettle et al, 2008) The innovation and R must definitely proceed, to produce high quality products.

With the increase in “green” awareness, Examiner must not forget to take the ecological and ethical issues in consideration when developing and testing new products (Wood, 2010) Logically, if Examiner and DOD Corning use the same factories, producing similar products, utilizing the same raw material, the cost of manufacturing will be reduced. I therefore suggest that the pricing strategy should be based on cost-based pricing and not market based pricing. This will also minimize price adjust administration hush more efficiencies.

I suggest the product range must be extended to additional 350 products, specifically products that is nearing its end of life cycle and try and re-launch the product by making modifications to the augmented product level and go to market with it.

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 renegotiation on price and quantities, this can be achieved by interrogating of the historic buying behavior of the customer. Leniency must be instituted on the order penalty system.

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Xiameter Harvard Case Solution & Analysis

Home >> Marketing HBS Case Solutions >> Xiameter

Problem Statement

Dow Corning Corporation is following e-marketing for their silicon raw material products. Silicon is used as a raw material in the making of several products. The case discusses the successful strategy articulated in Dow Corning for their marketing of silicon products, a chemical used in diverse applications. Currently, the company is facing problems related to its business to business marketing strategy. To overcome this situation the company is concentrating on its user needs and on developing a "needs-based" breakdown of the industrial customers.

Now the company is trying to manage its sales in the commodity market with the help of disruptive technological innovation. Bundling and de-bundling of technical services, hallmarking of commodity chemicals, web-based low price, or basic value proposition would also be going in vein due to some internal and external strategic factors.

Internal factors

The company was selling their products with the use of traditional selling methods and had never planned to capture global market share through the use of internet. However, its competitors are adopting new ways of marketing and spreading their product in the international market. Through this marketing strategy, companies can also explore new marketing stream which in turn will be profitable for the company. Using e-marketing for the promotion of chemicals is an unusual exercise in the chemical industry, and companies who are using this method are making considerable amount of money through this marketing strategy. Company must accept the e-marketing strategy to widen its market share in this business.

However exhibit 3 shows a steeper decline in the sales of the company regarding customer defection which in turn resulted in to an aggregated decline in the net sales of the company.

External factors

External factors that cause poor company’s performance was the product selling strategies fooled by its competitors. Xiameter sells their silicon material at low prices with after sale services to its customer. This package includes both the product and service cost. However, the existing customer does not depend on this little volume, lower-priced product with overhead-facility. The customer wants a large volume of silicon material and is so much willing to buy mass raw material at a high price. This factor has damaged Dow Corning’s customers from the manufacturing side. No matter if the company is selling its products at low price, as it is far more important to meet customer's demand. Explaining the customer detection scenario broadly was necessary because it was highly contributing to the poor performance of the company.

Xiameter was losing its share because the huge international and local competitors were enhancing the efficiency of their distribution networks and manipulating their economies of scale. Competitors were reducing their cost with mass production and selling bulk material at higher prices to challenge Dow Corning’s price range. Likewise, smaller local players were also taking advantage of this situation, the local companies entered the market and targeted huge market segments at low prices. However, local investors are viewing the big picture by observing market leaders. Without proper research and development these domestic companies were providing a range of commodity silicon products to the bulk customers at rock-bottom prices and damaging Xiameter’s market share and profitability.

Dual brand strategy

However, after analyzing the company internally and externally company has decided to make an investment on the incentive system of sales force. This incentive system will motivate them to achieve difficult sales targets. On the other hand, sales target must be revised on timely basis depending on the customer needs. Company would also use its distribution network to sell the product to its direct customer which in turn will save company’s inventory storage cost......................

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