VALUE MANAGEMENT IN B2B MARKETS

Value management in B2B markets - Michelin “Energy 4 “case

Value management in B2B markets - Michelin “Energy 4 “case

The main purpose of this paper is to solve the case study of Michelin. Michelin is considered to be among world's leading tire manufacturers. In captures the market share of 17.7%, and provides its services in the very heart of markets. It is running 71 sites in almost 19 different countries. Michelin is operating technology centers in three continents of the world including North America, Europe and Asia. The company is running two rubber plantations in Brazil; it has its commercial business in almost 170 countries. The company is full of well qualified and experienced staff of more than 129,000 from all over the world. Among these workers, 4,000 perform the functions of research workers. Michelin works to achieve its aim of attaining high profit with the help of its strong brands. It uses the technology and innovation in order to achieve the global growth.

To what extent do the original equipment and replacement tire markets differ?

There is a great difference between the original equipment and replacement tire markets. Original equipment markets offer the fresh and unused equipments. In the replacement tire markets, consumers experience two options; either to replace the tire parts or shell out for original equipments. If we keep in consideration the costs and quality, then it is essential to understand that it is not an easy comparison. There are also some other situations which can have an effect on the difference between the original equipment and replacement tire markets.

In replacement tire markets, the accidents and clashes may include another layer keeping in view the insurance policies, reimbursement and risks to be faced in future. Another concern to be noticed is that which part should be chosen and what should be the resale value of that chosen part.

Original equipment markets of tires are the original tires made for that specific vehicle. These tires become more expensive, when they are sold by the third parties. If we make a cost analysis on the basis of insurance perspectives, then original equipment markets of tire are better option than the replacement tire markets. This is because OEM tires are more expensive than the replacement tire markets; therefore, in case of any accident an insurance company imposes 100% reimbursement on it. A buyer, who gives importance to the cost, it is a very important point to keep in consideration. For example, in case of any clash with OEM tire equipment, the responsible person will only be paying the cost different between it's after market version. What comes standard in the original equipment should also be part of maintenance and repair market - that simple.

With this successful strategy and its full range of products, MAHLE has been for decades, with its brands MAHLE Original, Knecht, Metal Leve, and Clevite Perfect Circle, a valued partner for trade, repair shops and businesses around the engine ...