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Hilti (A): Fleet Management, Teaching Note

Casadesus-Masanell, Ramon ; Rivkin, Jan W.

Reference: HBS-719404-E
Year: 1999
Number of pages: 47
Geographic Setting: Latin America;Liechtenstein;Switzerland
Publication Date: Jul 1, 2018
Fecha de edición: Mar 4, 2019
Source: HBSP (USA)
Type of Document: Teaching Note
Industry Setting: Construction;Engineering, Construction & Infrastructure;Hand tools & power tools

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Description

This teaching note accompanies the case Hilti (A): Fleet Management 718419. It provides guidelines for class discussion, as well as a board plan and transcripts of the associated videos, Hilti Fleet Management Video Supplements. The associated 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

Business model innovation Business Models Customer relationship management Decision making Focusing on customers Innovation Inventions Leasing Restructuring Strategy Total customer value Transformations Value chains