By Laurie Young
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Extra resources for From Products to Services: Insights and experience from companies which have embraced the service economy
Example text
The development of strategy can be ‘procedural’ (where a number of prescribed steps are followed to arrive at a particular point), ‘functional’ (where it is someone’s job to draw up a well-presented and detailed strategic document), or ‘extant’ (consisting of a pattern of decisions by a dominant business leader which are largely intuitive and often understood only in retrospect). All have their strengths and weaknesses and none is an ideal approach. Whichever method is used, at some stage strategic thinking should be applied to any fledgling service business to validate, reject or invest in the new venture.
There was some discussion about making MFS a stand-alone subsidiary with its own systems to prevent confusion, but that suggestion was dismissed, based on the reasoning that having two separate Michelin offers in the market could damage the brand. Instead, MFS is now seen as a complementary business, with country managers able to choose the best option for customers. Making a mark with marketing It has also called for new thinking from the marketing specialists, who manage both external relations and the internal marketing necessary to achieve the changes in approach.
Customers, however, weren’t always keen to have Michelin engineers come along to dismantle their vehicles and take the tyres away to check them. After all, they owned them. So Michelin was smart enough to find a new solution: the company would own the tyres and the truck owners would pay per kilometre. Meanwhile, in the UK, the business was following a similar approach with buses, although for commercial rather than the technical reasons in France. Over the years this approach to the business grew, although somewhat haphazardly.