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Case | HBS Case Collection | August 2017 (Revised March 2018)

Hilti (A): Fleet Management?

by Ramon Casadesus-Masanell, Oliver Gassmann and Roman Sauer

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Abstract

This case explores the strategic decision-making process of premium power tools manufacturer Hilti in 1999, when the company was considering implementing a fleet management system in the construction industry. Fleet management would involve a shift from selling power tools to leasing them as a service. For Hilti, it represented an entirely new business model, which would substantially differentiate the company from its competitors. While fleet management had the potential to significantly improve the customer experience, Hilti was already a successful firm under its extant model and had to decide whether the restructuring of its business model was worth the risk.

Keywords: Hilti; business model innovation; BMI; fleet management; decision-making; decision making; Implementation; power tools industry; Construction industry; Construction; Europe; Switzerland; strategy; Liechtenstein; Business Model; Restructuring; Transformation; Transition; Customer Value and Value Chain; Customer Focus and Relationships; Construction; Innovation and Invention; Leasing; Strategy; Construction Industry; Switzerland; Liechtenstein; Germany; Austria; Europe; United States; Asia; Brazil; China; Latin America; North America; Africa; Japan; Hong Kong;

Language: English Format: Print 16 pages EducatorsPurchase

Citation:

Casadesus-Masanell, Ramon, Oliver Gassmann, and Roman Sauer. "Hilti (A): Fleet Management?" Harvard Business School Case 718-419, August 2017. (Revised March 2018.)

Related Work

  1. Case | HBS Case Collection | August 2017 (Revised March 2018)

    Hilti (A): Fleet Management?

    Ramon Casadesus-Masanell, Oliver Gassmann and Roman Sauer

    This case explores the strategic decision-making process of premium power tools manufacturer Hilti in 1999, when the company was considering implementing a fleet management system in the construction industry. Fleet management would involve a shift from selling power tools to leasing them as a service. For Hilti, it represented an entirely new business model, which would substantially differentiate the company from its competitors. While fleet management had the potential to significantly improve the customer experience, Hilti was already a successful firm under its extant model and had to decide whether the restructuring of its business model was worth the risk.

    Keywords: Hilti; business model innovation; BMI; fleet management; decision-making; decision making; Implementation; power tools industry; Construction industry; Construction; Europe; Switzerland; strategy; Liechtenstein; Business Model; Restructuring; Transformation; Transition; Customer Value and Value Chain; Customer Focus and Relationships; Construction; Innovation and Invention; Leasing; Strategy; Construction Industry; Switzerland; Liechtenstein; Germany; Austria; Europe; United States; Asia; Brazil; China; Latin America; North America; Africa; Japan; Hong Kong;

    Citation:

    Casadesus-Masanell, Ramon, Oliver Gassmann, and Roman Sauer. "Hilti (A): Fleet Management?" Harvard Business School Case 718-419, August 2017. (Revised March 2018.)  View Details
    CiteView DetailsEducatorsPurchase Related

About the Author

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Ramon Casadesus-Masanell
Herman C. Krannert Professor of Business Administration
Strategy

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More from the Author

  • Teaching Note | HBS Case Collection | January 2018 (Revised April 2018)

    Jumia Nigeria: from Retail to Marketplace (A) and (B)

    Ramon Casadesus-Masanell and Karen Elterman

    Founded in 2012, Jumia Nigeria, a startup effort by Germany-based Rocket Internet, aimed to become an African Amazon. The company entered the nascent market and immediately enjoyed an uptick in consumer spending fueled by the strength of Nigeria’s oil-based economy. By 2016, however, Jumia’s growth had begun to taper, hindered by plummeting oil prices, the subsequent economic downturn, and the pressure of Nigeria’s limited retail ecosystem. In addition, Jumia’s inventory-intensive retail model required significant infusions of capital that, in the face of a deteriorating economy and the company’s inability to show a profit, was becoming increasingly difficult to obtain. Considering all this and looking to the success of the Amazon and Alibaba marketplace models where third-party sellers largely carried inventory costs, the Board had made a drastic decision: Jumia would shift from an online retail model to a marketplace model. They also made it very clear that a failure to properly implement this transition could mean the end of investor support for Jumia. Senior management wondered how they would meet the challenges ahead. While Amazon in the US and Alibaba in China had found success with the marketplace model, they wondered if Jumia would be able to do the same. Was this the right model for the very different Nigerian environment? Would vendors, many of whom already had retail operations in the country, choose to sell through Jumia? How could Jumia continue to provide the same high quality customer service on which the company’s success had been built while switching to a marketplace model in which parts of this critical aspect would now be in the hands of third parties? Teaching Note for HBS Nos. 718-401 and 718-432.

    Keywords: globalization; Expansion; retail; marketplace; Inventory; Nigeria; Africa; ecommerce; competition; funding; Logistics; Competition; Business Model; Globalization; Emerging Markets; Expansion; Logistics; Retail Industry; India; Nigeria; Africa;

    Citation:

    Casadesus-Masanell, Ramon, and Karen Elterman. "Jumia Nigeria: from Retail to Marketplace (A) and (B)." Harvard Business School Teaching Note 718-467, January 2018. (Revised April 2018.)  View Details
    CiteView DetailsPurchase Related
  • Case | HBS Case Collection | December 2016 (Revised January 2018)

    The Rise and Fall of the Circus

    Ramon Casadesus-Masanell and Karen Elterman

    This case describes the origins of the traditional circus, including its rise to popularity in the United States in the 1800s, and examines the factors that led to its decline in the 20th and 21st centuries.

    Keywords: Blue Ocean Strategy; strategy; Circus; Strategy; Entertainment; History; Entertainment and Recreation Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Karen Elterman. "The Rise and Fall of the Circus." Harvard Business School Case 717-444, December 2016. (Revised January 2018.)  View Details
    CiteView DetailsEducatorsPurchase Related
  • Case | HBS Case Collection | March 2015 (Revised January 2018)

    Uber and the Taxi Industry (A)

    Ramon Casadesus-Masanell, Ian Mackenzie and Dimitri Dadiomov

    Keywords: Uber; taxi; North America;

    Citation:

    Casadesus-Masanell, Ramon, Ian Mackenzie, and Dimitri Dadiomov. "Uber and the Taxi Industry (A)." Harvard Business School Case 715-433, March 2015. (Revised January 2018.)  View Details
    CiteView DetailsEducatorsPurchase Related
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