MIELE Case Study

MIELE Case Study
Arnav Mohan 18BM60019
Prashant Prabhakar 18BM60081
Santosh Kulkarni 18BM60101
Vinay R S 18BM60127
Marketing Strategy Prof. Biplab Datta

1) What are the key resources that have made Miele
a successful company so far? Which of these are
marketing assets?
 The key resources that have made Miele successful are an integration of tangible,
intangible and organizational capabilities.
 Particularly, the firm is oriented around the customers and their consumption habits, and
focuses on providing higher quality and more innovative products than their rivals.
 They have dynamic marketing capabilities, so the key resources can be divided into
organizational, technological, intellectual, human and financial.
 These can be placed under each category, as marketing assets: Customer-based
assets: Brand; Reputation; Product based on the value of quality and innovation
 They also have internal support assets like:
 R and D
 Technical skills
 Supply-chain assets
 Distribution strength
 Patents
2) Miele are now facing more and more competition
in a changing market. Do their resources provide
them with a sustainable competitive advantage?
 At least in the next few years Miele have to fend off more competitors at the top end of
white goods market, moreover, to interest new generations of increasingly cost-
conscious consumers.
 However, a well-strategic combination of Miele’s resources and their dynamic
marketing capabilities can help them maintaining a sustainable competitive
advantage.
 The VRINO approach provides a good solution.
 Value - The firm’s resource base (e.g., technical skills, quality management process)
helps it to exploit technological advances (it is at the forefront of technological
innovations) and the resource base (e.g., brand management, customer cultural
adaptation) helps with demographic changes (the emerging middle classes in overseas
markets).
 Rarity - the firm has a resource base conducive to differential advantage.
 Inimitability - This firm is in good shape since its resource base includes intangible assets
(e.g., the brand) and processes; the R&D investment provides forward impetus; the 681
patents; the path dependency of its resources is key (it takes years/decades to develop
such resources)
 Non substitute - it would be difficult for other firms to arrive at Miele’s core strategy (e.g.,
sources of advantage) using a set of other resources comparable to Miele’s own.
Competitors have moved in a cost-based direction so would generally lack high end
resources to substitute in.
 Organization - there is evidence that the firm has leveraged its core resources, e.g., in
moving from home kitchens to professional kitchens.
3) What new resources might they need to
develop/acquire to remain successful in the future?
 Miele is successful thanks to their good exploitable combination of the firm’s resources
and the innovation
 However, one thing that may make a strain for them in the future is their high
production costs.
 Good news is that, with their existing resources and their capabilities they can find ways
to reduce their production cost by maintaining their product quality
 It is just an issue for the company to transform that into cost advantage. For example,
they could improve technology to cut the cost
 They could also concentrate more on automation as this would reduce their
production cost considerably.
 Firm perhaps has a market penetration emphasis i.e. it is selling whole kitchen solutions
to existing customers. It is filling the gaps in their kitchen needs, making every
appliance.
 Due to stagnant sales, there are signs the firm is beginning to exploit its current skills by
expanding internationally to premium customers, similar to the company’s base, in
markets like the U.S
 Diversification is too risky for this conservative firm that does not want to be a mass
market player.
 Miele’s marketing objectives could focus on market penetration to some extent,

increasing its ‘share’ of the premium market; but must also emphasize product
development and market development.
THANK YOU

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MIELE Case Study

Arnav Mohan 18BM60019

Prashant Prabhakar 18BM60081

Santosh Kulkarni 18BM60101

Marketing Strategy Prof. Biplab Datta

 Miele’s marketing objectives could focus on market penetration to some extent,

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