michelin case

8/13/2019 Michelin Case

1/13

Students :

Adrien Chaussii, Hugues Bertin, Amine Karouache,

Maros Kucera , Alexandru Ionita, Ionut Burlusi, Ionela Ion


2/13

Road transportation has still the share of lion (44% ofEuropean transportation) and still growing(expectation)

Dominated by small actors (80% of the company haveless than 5 trucks)


3/13

3 mains actors: Michelin, Bridgestone, Goodyear

Low price difference between the top 3

Threat of new entrance(Chinese and Korean firms). Lowcost of labor and cheap prices

Low added value perceived of the productCheap price isa key factorSTATEMATE INDUSTRY

27% of tires sold in the world are for Truck and buses (24million $ / year in Europe)


4/13

OE is the original equipment market. It includes the tiresold to equip brand new cars.

RT is Replacement Tires market. It includes the

maintenance and replacement of used tires.This is the market MFS is focused on even if theyleitmotiv is sell a service not a product .


5/13

Dominated by professional tire distributors

Theyre not specialized, or contracted by one singlebrand. They dont have the Michelin special skills in

maintenance for ensuring the four lives program ofa tire.

This program is at the heart of the perceived addedvalue of Michelin.


6/13

Michelin 4 lives program:

Better longevity of tires but they need a Michelinspecial maintenance.


7/13


8/13

F.S.

E.S.

I.A.C.A.

2.6

-3.14

-3.71.3


9/13

Stalemate industry. Better to share the game No innovation; core activity

only

Low perceived added value by customer

Tight cost control

Efficient use of asset


10/13

Potentially successful innovation.

Added value of service barely perceived by customers, andalso by sales team

Weaknesses regarding the distribution network

Organizational issues: Legal departments and Accountingdepartments disregard the MFS program because of theadministrative overwhelming work it implies.

Michelin relies on their own brand power to raise themarket.

Lack of functioning tool concerning the informationsystem


11/13

R1R2

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C1

1 32 7654 98 10

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6

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RELATIVE IMPORTANCEMICHELIN

performance


12/13

Company should continue with the service MFShowever important turnaround should beimplemented

Improve the contract: 5 years is too long

Improve the IT platform

Training for the sales persons


13/13

michelin case

Documents