Xiameter Case Study
Executive Summary
Silicon and silicon-based materials can be formulated to deliver unlimited range of uses. Silicon is durable enough for long lasting uses in the construction industry, yet can be gentle enough for uses in the healthcare and medical devices. Dow Corning has been pioneers in the development of silicones for commercial uses for the last 80 years, founded as a joint venture between Dow Chemical Company and Corning Glass. They became a global leader in manufacturers of silicon-based products with a 40% worldwide market share. Dow Corning was a pioneer producing fit for purpose market leading products.
Around late 1990 Dow Corning encountered major performance and financial losses, customers were defecting to low-priced suppliers which eroded Dow Corning’s volumes and margins. In 2001 after another dismal year and Dow corning not living up to its capabilities and layoffs proved inadequate, a fresh start was required. After numerous strategic deliberations Dow Corning decided on a dual brand strategy going forward, resulting in a ‘new’ business unit Xiameter ‘a disruptive innovation’ being formed.
Xiameter first mover advantage was starting to erode according to some pessimists, we need review current marketing plan, and chart a future for the business.
Introduction
The purpose of this report is to investigate decisions that shaped the business model and marketing strategy, interrogate the segmentation, discuss the product, pricing and competitive environment and possibly make recommendations to maintain the current market share Xaimeter is enjoying. Xiameter’s present model was centered on high priced advanced products with high quality service offerings.
Customers Analysis
Customers are spread worldwide in more than 80 countries within 6 concentrated industries, serving 25 000 customers with more than 7 500 products. Industries include from healthcare to automobiles and household products to electronics. (Xiameter Case
Silicon and silicon-based materials can be formulated to deliver unlimited range of uses. Silicon is durable enough for long lasting uses in the construction industry, yet can be gentle enough for uses in the healthcare and medical devices. Dow Corning has been pioneers in the development of silicones for commercial uses for the last 80 years, founded as a joint venture between Dow Chemical Company and Corning Glass. They became a global leader in manufacturers of silicon-based products with a 40% worldwide market share. Dow Corning was a pioneer producing fit for purpose market leading products.
Around late 1990 Dow Corning encountered major performance and financial losses, customers were defecting to low-priced suppliers which eroded Dow Corning’s volumes and margins. In 2001 after another dismal year and Dow corning not living up to its capabilities and layoffs proved inadequate, a fresh start was required. After numerous strategic deliberations Dow Corning decided on a dual brand strategy going forward, resulting in a ‘new’ business unit Xiameter ‘a disruptive innovation’ being formed.
Xiameter first mover advantage was starting to erode according to some pessimists, we need review current marketing plan, and chart a future for the business.
Introduction
The purpose of this report is to investigate decisions that shaped the business model and marketing strategy, interrogate the segmentation, discuss the product, pricing and competitive environment and possibly make recommendations to maintain the current market share Xaimeter is enjoying. Xiameter’s present model was centered on high priced advanced products with high quality service offerings.
Customers Analysis
Customers are spread worldwide in more than 80 countries within 6 concentrated industries, serving 25 000 customers with more than 7 500 products. Industries include from healthcare to automobiles and household products to electronics. (Xiameter Case