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Case Analysis: Xiameter The Past and Future of A Disruptive Innovation

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Pratiksha Pandey

Xiameter has experienced success as a disruptive innovator in the silicone industry since 1943. However, in the late 1990s, increased competition from low-cost suppliers led to customer defection. To address this, Xiameter considered expanding its product range beyond silicone and leveraging its brand reputation through online sales globally to capitalize on its first-mover advantage and strengths. Offering more products at decreased prices for cost-effective segments while maintaining relationships with mature customers was proposed to gain market share against rising threats.

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Case Analysis: Xiameter The Past and Future of A Disruptive Innovation

Uploaded by

Pratiksha Pandey
263 views9 pages
Xiameter has experienced success as a disruptive innovator in the silicone industry since 1943. However, in the late 1990s, increased competition from low-cost suppliers led to customer defection. To address this, Xiameter considered expanding its product range beyond silicone and leveraging its brand reputation through online sales globally to capitalize on its first-mover advantage and strengths. Offering more products at decreased prices for cost-effective segments while maintaining relationships with mature customers was proposed to gain market share against rising threats.

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Xiameter has experienced success as a disruptive innovator in the silicone industry since 1943. However, in the late 1990s, increased competition from low-cost suppliers led to customer defection. To address this, Xiameter considered expanding its product range beyond silicone and leveraging its brand reputation through online sales globally to capitalize on its first-mover advantage and strengths. Offering more products at decreased prices for cost-effective segments while maintaining relationships with mature customers was proposed to gain market share against rising threats.

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© All Rights Reserved
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
263 views9 pages

Case Analysis: Xiameter The Past and Future of A Disruptive Innovation

Uploaded by

Pratiksha Pandey
Xiameter has experienced success as a disruptive innovator in the silicone industry since 1943. However, in the late 1990s, increased competition from low-cost suppliers led to customer defection. To address this, Xiameter considered expanding its product range beyond silicone and leveraging its brand reputation through online sales globally to capitalize on its first-mover advantage and strengths. Offering more products at decreased prices for cost-effective segments while maintaining relationships with mature customers was proposed to gain market share against rising threats.

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Case analysis: Xiameter the past and

future of a disruptive innovation

MBA 2020

1
Timeline (1943-2001)

Industry segmented
Various services offered
products 

Innovative high-quality
Commercial applications
silicone

In late 90's there was increase in


market change
2
Tipping Point
Growing defection of customers due to
low price suppliers

3
Strengths:  Opportunities:
Capitalize in a strong position
1st mover advantage
Leverage on brands reputation
Company brand image
SWOT Online sales
Threats: 
Increase in competition
Analysis Global presence
Rise in commodity price

-
Xiameter Weakness:
Limited product range
Minimum order quantity of products

4
Solution 1 for the declining sales

Offer more products Extend the present product line of Consider include non-silicone items that
Xiameter to include Dow Corning-branded are purchased from third parties and sold
value-added silicones. under the Xiameter brand name.

5
Not abandoning low pricing strategy

Solution 2 for company can continue following dual brand strategy 

the issue Maintenance of low-price customers


Company growth.

6
Why to INTERNAL COSTS ARE
DECREASED
INCREASE XIAMETER'S
PRODUCT RANGE
DECREASE PRICES OF COST
EFFECTRIVE SEGMENT

create a cost
PRODUCTS

effective
segment
PRODUCTS ARE SOLD TO
MATURE MARKET AS THEY
KNOW THEIR
REQUIREMENTS.

7
Sell non silicon products
To differentiate from competition

Gain Market Logistical advantage


Use new gains to lower prices of silicon products
Share Create partnership for complementary products
Boost the online platform

8
Thank you

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