Michelin Case Study (Case Study Sample)

Name
Course
Tutor
Date
Michelin Case Study
Question: Would you recommend pursuing / modifying / abandoning Michelin’s solution offer?
I would recommend seeking Michelin's solution offer because it has many benefits for any truck company. To start with, you will have to take into consideration the several components of the tender that make it very appealing to any truck company. The offer includes performance objectives that are contractually guaranteed, with gains shared with the customer. It means that Michelin offer will increase the production of many trucks and therefore increasing the benefits earned by many customers worldwide. More profits for customers will mean guaranteed customer base for our products not only the tires but also for the complementary products and services that Michelin Solutions offer.
Another component offer of the Michelin Solutions is the integration of an array of action drivers that include more just the tire. This makes this offer attractive not just to the Michelin Company but any related company. The integration of an array of action drivers gives the tire more life and strength, therefore, benefitting the truck company and the Michelin Company in terms of earnings. There is also the support the support of an ecosystem of partners that are experts in a variety of fields such as a training, telematics, and electronics to deliver an integrated solution that is unique in the market. The good part of the solution on the customer side is that there is a money-back guarantee if the objectives are not met.
Michelin Solutions has or is in the process of launching EFFIFUELTM program, which is an initial solution that aims to reduce fuel bills for truck fleet managers and owners in Europe. EFFIFUELTM assimilates the significant aspects that effect vehicle energy consumption, with driver teaching and sustenance. The disposition of an enthusiastic crew of Energy Analysts to develop activities that enhance energy proficiency and the application of methods to guarantee real-time traceability of vehicle information. Alternative solutions to improve mobility for the business customers are being developed and will help enrich the Michelin Solutions portfolio in the future years. Therefore, the EFFIFUEL presents a luxurious investment for the company, as it is likely to increase the profit level earned. Therefore, this makes Michelin Solutions offer pursuable and profitable in the eyes of any investment company.
By creating Michelin Solutions, Michelin is offering its clients with the full extent of its expertise to support their transition to the world safer, cleaner, more efficient mobility. At the same time, Michelin solutions are addressing dominant societal expectations for sustainable progress and the constant search for greater efficiency. All these benefits that will be offered by Michelin solutions provide are critical and essential in the truck and transport industry (Blackwell et al., p.183).
If you take a look back at Michelin's past, you will notice that since its beginning, it has always been a global player in mobility. It has been the principal developer of the best possible tires and at the best offering a wide array of services to its clients. The primary reason for developing Michelin solutions, which came to life in 2012, was to improve the efficiency of vehicle fleets and to increase the company's profit margin. Practically speaking, this new corporation develops in a broad range of areas including outsourced tire management, vehicle productivity, and fuel savings (Done, p.107).
Michelin Solutions' goal is to become the trusted companion that decides the chief mobility-related difficulties confronted by fleet administrators while backing up their development and distributing the profit generated by them. The result is a pledged agreement amid the client and the company that specifies the possessions to be organized and the goals to be achieved (Lottman, P.67). I think Michelin solutions has an essential role in the truck and transport industry and are therefore a worthwhile offer to pursue.
EFFIFUELTM, which is a product of Michelin solutions, presents an initial innovative solution that is immediately available. With the launch of EFFIFUELTM, its first solution for truck fleets, Michelin solutions is working with truckers to reduce their fleet of the fuel costs. In the world of trucking, as in the world of transport, this mutual dedication illustrates a breakthrough invention that offers new solutions to a business looking to earn a profit. The transport industry demand has been steadily declining in recent years because of the recession in Europe. EFFIFUEL empowers Michelin to move into a new stage in the good-service market and to spread out further this new trade model, advanced from Michelin Fleet Solutions (McLoughlin et al., p.131).
Another reason I would choose to pursue Michelin solutions is that it deals with maximization of fuel efficiency. It should be recognized that fuel is the most accessible lever to improve profit margins for any transport company. EFFIFUELTM denotes the Michelin solutions to trucking corporations to aid them minimize their energy costs, which signifies a considerable quota of their working budget. Research demonstrates that there will be an annual rise in the price of diesel energy of approximately 3% to 4% in the future years. The fluctuation in diesel in energy has always been observed, for instance, in Western Europe, the cost of diesel energy rose by about 4% between 2005 and 2012 (Hunt et al., p.105). As it is widely known, fuel accounts for a high percentage of fleet expenses in many countries world over. In France, for example, fuel is believed to be a trucking company's biggest liability. If you consider, for instance, a truck driven for 120,000 kilometers a year, the monthly fuel costs will be quite massive and unbearable. Therefore, this makes the invention of EFFIFUELTM a stepping-stone to higher profits for the trucking companies (Ferrell, p.25).
The enterprise that Michelin Company is providing to truck businesses is exceptional and unique to any other in the market today. The EFFIFUEL solution aims to aid truckers contain and minimize their fuel expenses. Depending on the fleet’s initial situation, working with the company, defines a vowed obligation based on energy savings and the resources to attain them. The profits generated by the solution are distributed among the shareholders. The array of levers that Michelin Solutions offers to the trucking companies has some benefits. The most important are, one, eco-driving lessons provided by professionals and controlling of drivers' at the wheel manner based on distinct eco-scores. Secondly, there is the fitting of telematics display elements that give truckers visibility and help them examine considerations and track energy use (Pederson, p.88).
Although Michelin solution offer seems to be a profitable venture, it has its flaws and if not considered will lead to losses rather than profits. For Michelin solution offer to be successful, there should client segmentation. For Michelin Fleet Solutions to meet profitability objectives, it should aim at capturing more value from customers by implementing a needs-based segmentation program. The idea here comes from the fact that, transportation businesses have varying priorities and goals that mainly depend on the category of goods transported such as bulky material, highly dangerous chemicals, and pressured commodities. The company needs to design customized bundles to address specific clients' requirements. The willingness to pay varies according to the segments (Malloch, p. 101...