For example, Michelin
the world largest tire manufacturer (Michelin, 2015), the company’s number one
priority has always been its customers and trying to adapt to its customers’
needs while creating and maintaining a competitive advantage in the
market. Hence, that drove the company to
a change, into a new business of giving services as a product. That philosophy created the Michelin Fleet
Solutions (MFS). In Bitner,
Gremler, & Zeithaml, (2013) with promising growth
visions, Michelin Fleet Solutions was deployed by Michelin in 2000 with a
complete tire- management solution for hefty European transportation companies,
for example Schenker, TNT, Geodis, or Norbert Dentressamgle. Certainly, knowing the time frame when MFS
was deployed, that was the best business move by Michelin to entice more
customers and progress his position in the marketplace. However, while
conceptually appealing, the deployment of the MFS service encountered
difficulties internally and externally because of the change.
One MFS sales man said "...This is
a new job, and my tire expertise can hardly help me...I find it difficult to
show the clients the value of this solution offer. We also face real problems in pricing:
clients don't immediately see why they should pay more for tire managment
solutions than they should pay when they only bought tires! They do not see the
value brought by the extra activities we perform and the scope is so large that
i find it difficult to list all these benefits. This solution is verry complex
to sell" (as quoted in Bitner et
al., 2013).
While MFS failed to make connection with its customers, it
appears they had an even bigger problem internally because of the change. The sales person wasn’t trained enough about
the product service to be able to convince the clients of purchasing the
service. While, this could be a critical
impact on the promotion of the service, the customers would not buy the service
if the salesperson doesn't know or trust the service.
Furthermore, there was a heavy rivalry between the product
salesperson and the service salesperson.
Product sales person can't tolerate the solutions sales- person
promoting the solutions service with their biggest clients; the product
salesperson candidly condemns the MFS service (Bitner et al., 2013).
Hence, disagreement between the
traditional product salesperson and the service salesperson could have
contributed to the failure of the FMS service because the employees lose the
meaning of their job role and are no longer satisfied to provide good services to
customers. Customers pay attention to
details when they're buying something new, and any form of conflicts from the
company representatives will tip the clients to decline the offer and that
would eventually impact the company as a whole.
References
Bitner, M., Gremler, D., &
Zeithaml, V. (2013). Introduction to Services. In Services Marketing:Integratin Customer Focus Accross the firm (6th
ed., pp. 549, 550, and 551). New York , NY :
McGraw-Hill.
Michelin. (2015, November 18).
Retrieved November 28, 2015 , from Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Michelin#History
Ulrich, D., and Ulrich,W.,(2010). Getting Beyond
Engagement to Creating Meaning at Work. Harvard
Business Review. Retrieved from: https://hbr.org/2010/06/getting-beyond-engagement-to-c
Yukl, G. (2013). Leading Change and Innovation. In Leadership
in organizations. (8th ed). (pp. 81). Upper Saddle River, NJ: Prentice Hall
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