Xiameter Case Study: Adding Business Model Innovation

Dow Corning is a company that had substantial investments in R&D, significant resources sunk into customization for lead customers, and a high level of commitment to continuing to build market-leading products.

But at the end of the 1990s, they noticed that a large part of the market didn’t want or need this level of service and support. For many applications, silicone was becoming a commodity. To meet these low-end market needs, the company formed Xiameter as a separate business. Remarkably, the company has been able to operate both business models simulataneously, with a high degree of success. This article by Tim Kastelle isolates a number of the key success factors that make Xiameter’s and Dow Corning’s side-by-side business models work.

Read full article » timkastelle.org/blog…

 

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