Michelin fleet solutions from selling tires to selling kilometers

MICHELIN CASE STUDY 1 MICHELIN CASE STUDY DRAFT SUBMISSION 2 Michelin Case Study 10 - 12 page I. Compare and contrast Michelin Fleet Solutions with Michelin's traditional tire-selling business model. Identify and describe the impact to Michelin's bottom line. The Michelin company is not a stranger to innovation, and their journey started back in 1895 when the company moved from bicycle tires to a car. The Michelin Brothers install the first air-filled tires on their race car Lightning and was also the first company to introduce the concept of a spare tire for cars back in 1913. Moving forward to 2014, The EverGrip™ technology was introduced which allows a tire to evolve as it is being used, performing even when it’s worn. This “safe worn tire” has the ability to grips even on wet roads (Michelinman.com, 2018). The Michelin company operated as a traditional tire company. The company pioneered in the tire manufacturing industry and was completely focused on manufacturing and selling tires. This business model was a great success at the time and was a basic straight forward path for the company. The company performance was mainly measured by the quantity of the tires sold and the customer was responsible to pay all the cost upfront and in case the custemer needed a new tire, they would need to buy a whole new one. Back In 2000, Michelin launch the Michelin Fleet Solutions, and by doing so, the company moved from solely manufacturing tires and selling them, to also renting the tires. By becoming a service provider, Michelin started to share the risk and cost associated with operating a fleet with their customers for a monthly fee. II. What was Michelin's rationale in moving toward solutions?