HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeMichelin and the electric power train revolutionback to Strategy

Case Study

Michelin and the electric power train revolution

By Jean-Philippe Deschamps

19 pages

October 2010

Order this case study

Reference: IMD-3-2170

Michelin, the world’s second largest tire manufacturers, has developed a broad range of power train systems and components for zero-emission electric vehicles. These systems include: Motorized wheels (wheels integrating an electric drive motor); “Active wheels” (wheels integrating an electric drive motor and an electrical intelligent suspension system); Fuel-cell systems; Auxiliary power solutions (combination of batteries and super-capacitors); Electric motors; Power electronics; Gas storage systems (for hydrogen storage in fuel-cell vehicles). These systems have been extensively tested and successfully validated by the company on internally developed vehicles. Michelin has also launched joint development and testing projects with two small French car specialists and the two leading French car manufacturers. However, no business or partnership agreements have yet been signed beyond these prototype development projects. Patrick Oliva—Corporate VP in charge of sustainable business development at Michelin—is conscious that (1) Michelin is entering a completely different emerging industry, and (2) to win adoption of its new systems by automotive manufacturers, it will have to devise completely different business models than for its traditional tire business. Michelin will need to capitalize on the trend for electric vehicles and convince car manufacturers or mobility operators to enter into partnerships despite the fact that the company’s systems might reduce their own value added. Oliva is now exploring strategic partnering and business model options with different types of partners, depending on their size, interest in electric vehicles, geographical locations and expected willingness to partner with the company.

Learning Objective

1) Assess the strategic and business model options of a component manufacturer wishing to introduce a breakthrough system innovation which requires partnering with OEM customers. 2) Understand how different types of OEM customers, in terms of their size, resources and geographic location are going to react on an innovation which is going to dramatically alter their value chain. 3) Reflect on leadership skills and attitudes that are required to build successful partnerships and establish win-win partner coalitions to introduce a radical innovation.

Keywords

Breakthrough Innovation, Partnership, Business Model, Automotive, General Management, Strategy

Settings

World/global
2010 onwards

Type

Field Research

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

Keep reading

Case Study

Mastercard 2023: Rewired for infinite optionality

Disruption Digital Strategy

By Howard H. Yu, Mark J. Greeven and Martin Králik

Article

Management myth-busters: Does culture really eat strategy for breakfast?

Culture eats strategy for breakfast is one of the most enduring truisms of management. But is it really the case? And what is culture anyway?

Organizational Culture Strategy

By Michael R. Wade

in I by IMD

8 November 2024

Article

Strategy stack: An integrated approach to decision-making

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Change Management Competitiveness Decision Making Innovation Strategy

By Albrecht Enders, Ajay K. Kohli, Andreas König and Arnaud Chevallier

in I by IMD

Case Study

Bossard’s AI strategy for proven productivity (Cartoon case)

Bossard, a Swiss company founded in 1731, has successfully transitioned from a product-centric approach to one that offers services and solutions. It has achieved significant revenue growth despite economic challenges. Its brand promise, “proven p...

Artificial Intelligence Business Transformation Strategy

By Stefan Michel

Case Study

The AI paradox: Will generative AI enhance or destroy the business model of 99designs.com? (Cartoon case)

99designs.com is a global platform connecting freelance designers with potential clients. The case study examines the potential impact of generative AI on 99designs’ business model. The platform uses a crowdsourcing approach that invites designers...

Strategy Business to Business Digital Disruption

By Stefan Michel

Article

How CEO’s drive saved car giant Ford from the scrapyard

Companies desperately in need of a turnaround in fortunes should take inspiration from the 2008 rescue mission by the then-new Ford boss Alan Mulally.

Agility Business Transformation Change Management Competitiveness Decision Making Future Readiness Leadership Organizational Culture Performance Management Strategy

By Howard H. Yu

in I by IMD

Article

Look in to look out: Strategy and family business identity during COVID-19

COVID-19 challenges the value systems of family firms and urges them to adapt their behaviors, affecting their identities. This study aims to explore how and why family businesses strategically respond to challenges to their identity during COVID-...

Family Business Strategy

By Alfredo De Massis, Rebecca Alguera Kleine and Bingbing Ge

in Small Business Economics

October 2024, vol. 63, pp. 993–1018, https://doi.org/10.1007/s11187-023-00846-3

Article

Family businesses and strategic change: The role of family ownership

In this study, we analyze how the performance-aspiration gap influences strategic change in family firms, providing evidence of the moderating role of family ownership in this relationship. According to socioemotional wealth (SEW) theory, family o...

Family Business Strategy

By Nina Schweiger, Kurt Matzler, Julia Hautz and Alfredo De Massis

in Review of Managerial Science

October 2024, vol. 18, pp. 2981-3005 https://doi.org/10.1007/s11846-023-00703-3

Report

Nature's ROI: Five key enablers for building a nature-positive business strategy

As the global environmental crisis reaches unprecedented levels, businesses face mounting pressure to act. But this challenge is also a major business opportunity. The companies that move quickly to tackle biodiversity loss will not only protect o...

Sustainability Strategy

By Julia Katharina Binder, Adrian Dellecker and Aurélie V. Stamm

IMD Center for Sustainable and Inclusive Business Report, October 2024

Mastercard 2023: Rewired for infinite optionality

By Howard H. Yu Mark J. Greeven and Martin Králik
Case reference: IMD-7-2455 ©2024

Summary

In the 2010s, card processing – Mastercard’s flagship service – started showing signs of commodification as new, nimble players (typically, fintech startups thriving on digital) entered the payment processing space, and customer preferences evolved beyond plastic cards and traditional contact payments. To re-energize its central position and its ability to capture value, Mastercard – as the incumbent – had to make bold decisions. The case details Mastercard’s approach to conceptualizing and building a global platform ecosystem that upholds the principles and design elements of modularity (i.e. interoperability and scalability) and optionality. Today, Mastercard's services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. All along, the company has accommodated a high level of internal disruption. The case also explores the nature of Mastercard’s systematic collaboration with fintechs – players that often started out as competitors in specific parts of Mastercard’s value chain. It describes the company’s engagement with fintechs as fostering collaboration and co-creation and facilitating access; in other words, opening doors and sharing tools with partners. The case presents observations and quotes by CEO Michael Miebach, whose career trajectory at Mastercard – spanning Africa & Middle East experience, fintech partnerships, product management and the CEO role – sheds additional light on the philosophy and values that have driven the company’s transformation to a technology powerhouse and self-described original fintech.

Reference IMD-7-2455

Organization Mastercard

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Disruption

Digital

Strategy

Browse all topics

Strategy stack: An integrated approach to decision-making

By Albrecht Enders Ajay K. Kohli Andreas König and Arnaud Chevallier
in I by IMD

Summary

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Change Management

Competitiveness

Decision Making

Innovation

Strategy

Browse all topics

Bossard’s AI strategy for proven productivity (Cartoon case)

By Stefan Michel
Case reference: IMD-7-2575 ©2024

Summary

Reference IMD-7-2575

Organization Bossard Holding

Industry Manufacturing, Fasteners

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Business Transformation

Strategy

Browse all topics

The AI paradox: Will generative AI enhance or destroy the business model of 99designs.com? (Cartoon case)

By Stefan Michel
Case reference: IMD-7-2505 ©2024

Summary

Reference IMD-7-2505

Industry Manufacturing, Graphic Design

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Business to Business

Digital

Disruption

Browse all topics

Look in to look out: Strategy and family business identity during COVID-19

By Alfredo De Massis Rebecca Alguera Kleine and Bingbing Ge
in Small Business Economics October 2024, vol. 63, pp. 993–1018, https://doi.org/10.1007/s11187-023-00846-3

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Strategy

Browse all topics

Family businesses and strategic change: The role of family ownership

By Nina Schweiger Kurt Matzler Julia Hautz and Alfredo De Massis
in Review of Managerial Science October 2024, vol. 18, pp. 2981-3005 https://doi.org/10.1007/s11846-023-00703-3

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Strategy

Browse all topics

Nature's ROI: Five key enablers for building a nature-positive business strategy

By Julia Katharina Binder Adrian Dellecker and Aurélie V. Stamm
IMD Center for Sustainable and Inclusive Business Report, October 2024

Summary

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Sustainability

Strategy

Browse all topics