Michelin: Building a Digital Service Platform
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Publication Date:
March 05, 2020
Industry:
Transportation
Industry:
Automotive
Industry:
Travel
Source:
Harvard Business School
Michelin, a tire company with over a century of experience, is one of the most dominant companies in the industry in 2020. However, some within the company fear that sales could decline if Michelin does not seek to modernize. For this reason, Michelin has attempted to create a digital service platform for its fleet and dealer customers. Setting up this platform leads to a classic chicken and egg problem. Should Michelin focus on building its dealer network first, and then bring fleets onboard? Or should they amass fleet customers before convincing dealers to join the network? The team behind the digital service platform also struggles with a potentially bigger problem of how to change the internal culture of Michelin which has been forged through a century of selling tires. The case outlines Michelin’s past efforts to establish a digital platform, struggles with changing the tire industry’s entrenched habits, and problems with pricing structure.
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Michelin: Building a Digital Service Platform
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