Case Study

Orica mining services

4 pages
May 2007
Reference: IMD-5-0725

In the 1990s, fierce competition from low cost competitors in the explosives industry was seriously affecting Orica’s Mining Services’ (then ICI Australia) profitability. Orica transformed its business model from selling commoditized products to selling solutions packages. It focused on solving the customer’s problem, not just on providing a solution to part of the problem. As a result it was in much less direct competition with low cost players and transformed itself from being a solid player in the market to being the preeminent player globally.

Learning Objective

Illustrate one approach to meeting the commoditization challenge.

Keywords
Explosives, Price Competition, Commoditization, Drilling, Technical Consulting, Consolidation, Mining Services
Settings
Western Europe, Australia
Materials, Metals and Mining
1990s
Type
Published Sources
Copyright
© 2007
Available Languages
English
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