Transforming Business Models: Dow Corning's Strategic Shift PPT

This PPT slide, part of the 30-slide Business Model Innovation PowerPoint presentation, presents a case study of Dow Corning, illustrating how the company adapted its business model to target low-end customers through a distinct business unit. This strategic shift allowed Dow Corning to explore new market opportunities without undermining its traditional high-margin offerings.

On the left side, the established business model is outlined. It highlights a customer value proposition focused on customized solutions and negotiated contracts, which cater to a more premium clientele. The profit formula relies on high-margin, high-overhead retail prices that support value-added services. Key resources and processes emphasize R&D, sales, and service orientation, indicating a complex operational structure designed for high-touch customer interactions.

Conversely, the right side details the new business unit designed for low-end customers. This model is characterized by a simplified value proposition, offering no-frills, bulk pricing sold directly through the internet. The profit formula shifts to spot-market pricing with lower overhead, enabling the company to maintain profitability despite reduced margins. The focus on high throughput indicates a streamlined operation aimed at efficiency. Key resources and processes are adapted to include an IT system that emphasizes low-cost processes and maximum automation, showcasing a significant departure from the established model.

This analysis reveals how Dow Corning successfully navigated market segmentation by creating a separate unit that meets the needs of a different customer base while preserving its core business. The insights gained from this case can guide other organizations in exploring innovative strategies for growth without compromising existing revenue streams.

This slide is part of the Business Model Innovation PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Innovation Management Business Model Innovation Business Model Design Value Proposition Customer Value Proposition Market Segmentation Sales Innovation

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I

... [read more]

– Nishi Singh, Strategist and MD at NSP Consultants

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.

"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so

... [read more]

– Omar Hernán Montes Parra, CEO at Quantum SFE

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting