Orica mining services
In the 1990s, fierce competition from low cost competitors in the explosives industry was seriously affecting Orica’s Mining Services’ (then ICI Australia) profitability. Orica transformed its business model from selling commoditized products to selling solutions packages. It focused on solving the customer’s problem, not just on providing a solution to part of the problem. As a result it was in much less direct competition with low cost players and transformed itself from being a solid player in the market to being the preeminent player globally.
Illustrate one approach to meeting the commoditization challenge.
Materials, Metals and Mining
1990s
Cranfield University
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Harvard Business School Publishing
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NUCB Business School
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