Abstract

The case “Dow Corning’s Xiameter Brand: Product Commoditization and Business Model Innovation” talks about the efforts taken by Dow Corning Corp (Dow) to reinvent its business to cater to the price conscious buyer of silicone products better. The case starts out by mentioning the history of Dow and its evolution as a pioneer in developing silicone products. It goes on to describe the trials faced by the company due to the commoditization of certain silicone products and the resultant rise in competition. Later, the case details the new Xiameter business model adopted by the company, along with the B2B online sales channel Xiameter.com. It also describes the success of the business model both in serving customer needs and in growing business prospects. The case ends with mentioning some of the changes being made in the business model and the future technologies that might become part of Xiameter.com.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To understand the need to bring in new business models
• To realize the importance of right customer segmentation
• To determine appropriate pricing structures
• To recognize the need for competitive advantage in commodity products
• To be aware of the necessity for clarity in brand identity

Keywords

Silicone, Commodity, Business Model Innovation, Customer Segmentation, B2B online sales, Brand Identity, Brand Management, Cannibalization, Product Positioning, Pricing, Information Management System, Enterprise Resource Planning (ERP), SAP, Support & Services, Product Life Cycle, Maturity stage, Competitive advantage, Xiameter, Dow Corning, Hub-and-spoke system, Make-to-order strategy,