HomeResearch & Knowledgeback to HomeMarketingback to Research & KnowledgeBusiness model innovation: Michelin Fleet Solutions – from selling tires to selling kilometersback to Marketing

Case Study

Business model innovation: Michelin Fleet Solutions - from selling tires to selling kilometers

By Wolfgang Ulaga, Frédéric Dalsace and Chloé Renault

5 pages

June 2013

Order this case study

Reference: IMD-5-0793

Michelin, a worldwide leader in the tyre industry, launched in 2000 a comprehensive tyre-management solution offer for large European transportation companies, called Michelin Fleet Solutions (MFS). With this new business model, the company ventured into selling kilometers – instead of selling tyres. This decision moves the strongly product-driven firm into the new world of services and solutions. The shift is intuitively appealing, and it provides Michelin with an opportunity to differentiate itself in the tyre business. After 3 years, however, expansion is far below expectations and profitability is terrible – despite the outside help of a strategy consulting firm. The case presents the decision point in 2003, whereby MFS’s future has to be decided. Should Michelin seek to further develop this solution offer, and try to repackage the offer yet another time? Or was it just a passing fad that should be abandoned?

Learning Objective

This case investigates the difficulties that industrial groups face when they transition from selling products to providing service. It enables participants to reflect on the following issues: What’s industrial groups’ rationale for moving towards solutions? What kind of business model reconfiguration does it imply? How does moving to solutions raise multiple challenges throughout the organization (eg in terms of sales force management, risk management, channel relationships etc)?

Keywords

Solution, Transition, Product, Services, Service Excellence, Business Model Change, Fleet Management, Channel Relationship, Sales Force, Customer, Value, Environment, Marketing, Business to Business

Settings

Europe, France
Michelin, Automotive
2003

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

2015 THE CASE CENTRE AWARD WINNER (Marketing)

Keep reading

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Case Study

Has Nike lost its stride?

Set in 2024, the case describes the trajectory of Nike's success and how it had recently lost its way. The company was experiencing its worst slump in more than 10 years. Since 2020, CEO Donahoe oversaw a significant shift away from wholesale, wit...

Marketing Digital Strategy

By Ivy Buche and Goutam Challagalla

Case Study

Aluminium Cyclo Enterprises Malaysia: How to manage a supply chain disruption?

In 2024, the management of Aluminium Cyclo Enterprises (ACE), was concerned that the European Union (EU) export rules for ferrous and non-ferrous scrap were becoming more restrictive. Not just the EU, but close to 43 countries had restricted the e...

Marketing

By Dominique Turpin, Anamaya Narain Singh, Cyril Darlong Diengdoh and Sandeep Puri

Article

China’s pharmaceutical sector: innovation meets demographic-driven demand

Explore how innovation, R&D, and policy reforms are reshaping China’s pharmaceutical sector amid rising healthcare demand and demographic shifts.

China Decision Making Global Business Innovation Marketing

By Mark J. Greeven and Sophie Liu

in I by IMD

Article

How to structure a B2B marketplace venture

Business-to-business marketplaces, like their consumer-facing cousins, help streamline purchasing by giving buyers and suppliers an online platform for conducting transactions. Once a company decides that it wants to create a marketplace to make t...

Business to Business Strategy

By Didier Bonnet, Geoffrey G. Parker, Georgios Petropoulos and Leonardo Serra

in MIT Sloan Management Review Blog

10 April 2025

Article

6 new roles for marketing managers utilizing AI

As AI systems become increasingly adept at generating creative content across multiple modalities, Michael Yaziji identifies six new roles the marketing manager can undertake to become the orchestrator of an infinitely productive AI team.

Marketing Artificial Intelligence

By Michael Yaziji

in I by IMD Brain Circuits

26 March 2025

Article

You are not your role: How to lead without losing yourself

Taking up a new leadership post can mean a dramatic shift in the way others see you – and how you define yourself. It is vital to learn how to separate your true self from the demands and expectations of the role.

Culture Leadership Marketing Stakeholder Management

By Judy Kent and Alyson Meister

in I by IMD

Article

Keep an eye on marketing if you want to avoid a car crash - Su-Mei Thompson IMD business school for management and leadership courses

Campaign failures at Apple, Bud Light, & Jaguar show why boards must prioritize marketing oversight. Insights from Su-mei Thompson.

Board Diversity and Equity and Inclusion Marketing

By Su-Mei Thompson

in I by IMD

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2696 ©2025

Summary

This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The video B case features interviews with three Vanzetti Engineering executives: the marketing director, the CEO and owner and the chief commercial officer. With the shrinking of the automobile industry, the company has had to reposition itself in other industrial sectors where it is significantly smaller than the customers. Vanzetti Engineering embraced some of the codes of luxury branding according to what suited it and ignored others. The company discovered that although it was focused mostly on creating functional value, it had to dwell much more on emotional and societal value creation. The process of brand elevation required a complete cultural transformation, and one of the lessons from the case is that a brand is not a slogan but a way of being and of delivering value.

Reference IMD-2696

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2688 ©2025

Summary

Survey after survey shows that executives think their business is in danger of being commoditized. This means their company is not able to differentiate sufficiently to command higher market prices and profits. Luxury brands, by contrast, are the opposite of commodity. Their whole approach to branding is based on desirability. This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The written A case gives a short background on Vanzetti Engineering, which is facing intensifying competition in an evolving marketplace, and launches the first question for discussion.

Reference IMD-2688

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

Has Nike lost its stride?