HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeMichelin: Digital transformation and culture – where the rubber hits the roadback to Strategy

Case Study

Michelin: Digital transformation and culture – where the rubber hits the road

By Didier Bonnet and Lisa Simone Duke

19 pages

June 2021

Order this case study

Reference: IMD-7-2278

The Michelin case study is about business and cultural change through the implementation of a digital transformation. It describes how Michelin, a 130-years old leading global player in the tire industry, was facing intense competition from Asian low-cost players, who were commoditizing the core product. In addition, large digital platforms, such as Amazon or Alibaba, were disintermediating distribution and vehicle ownership patterns were also changing with the emergence of new rental and car-sharing models. These changes brought the message home to the management that Michelin needed to refocus on putting its customers at the heart of everything the company does, simplify operations, empower its people to make the change happen and innovate its business model to find new sources of value. Michelin embarked on a digital transformation that was the catalyst for all the transformation of the global business. The case details the steps taken by senior management to initiate and deploy its digital transformation and, in parallel, evolve what was a very strongly entrenched company culture. The success of Michelin’s digital and culture change was in large part due to a strong commitment to digital transformation from senior management and a careful execution orchestration taking into account the highly decentralized and global nature of the organization.

Learning Objective

Show how digital strategy and transformation require a significant evolution from the existing culture
Show how culture change must be linked to business objectives and the new working practices that digital transformation demands
Illustrate how to achieve culture change by empowering operational and frontline staff

Keywords

Strategy, Digital, Digital Transformation, Organizational Culture, Leadership, Culture Change

Settings

World/global
Michelin, Manufacturing, Automotive, Tires
2014-2020

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Best-selling Case Study

Keep reading

Article

Global trade fragmentation - Supply Chains

New models of economic development are emerging from global trade fragmentation. Supply chain executives must now weigh far more complex trade-offs, says Christos Cabolis

Competitiveness Strategy Supply Chain

By Christos Cabolis

in I by IMD

Article

Redesign pay incentives - Climate promises into action

To turn climate promises into meaningful results, boards must shape pay incentives by embedding environmental targets into compensation packages.

Corporate Governance Leadership Regulation Strategy Sustainability

By Sara Ratti

in I by IMD

Case Study

Chugai (C): Navigating the next century of global innovation

Strategy Mergers and Acquisitions Organizational Culture Global Business

By Kazuo Ichijo and Yunfei Feng

Case Study

Chugai (B): Alliance with Roche to be among the best

Strategy Mergers and Acquisitions Organizational Culture Global Business

By Kazuo Ichijo and Yunfei Feng

Article

Are you sick as a parrot? 4 ways to sharpen your language skills and become a more effective leader

Soulless management talk disengages teams. Use authentic, thoughtful language to inspire connection, motivation, and purpose in your leadership.

Leadership Strategy

By Peter Meyers

in I by IMD Brain Circuits

13 November 2025

Article

Aprender a desaprender: cómo adaptarse a un mundo que ya no responde a lo esperado

En entornos volátiles, complejos y en constante transformación, la experiencia acumulada puede volverse un lastre difícil de superar.

Change Management Leadership Strategy

By Martin Fellenz

in I by IMD

Report

AI strategies that are working

IMD’s 2025 AI Maturity Index highlights how leaders of the most successful companies are scaling AI technologies across 10 industries for competitive advantage

Artificial Intelligence Strategy

By Tomoko Yokoi, Michael R. Wade and Jialu Shan

IMD White Paper, November 2025

Case Study

Chugai (A): Overcoming adversity with a transformative leap

Strategy Mergers and Acquisitions Organizational Culture Global Business

By Kazuo Ichijo and Yunfei Feng

Case Study

Building an IT ecosystem at Intertech

Strategy Innovation Digital Talent Management

By Murat Tarakci

Case Study

Building an IT ecosystem at Intertech

Strategy Innovation Digital Talent Management

By Murat Tarakci

Global trade fragmentation - Supply Chains

By Christos Cabolis
in I by IMD

Summary

New models of economic development are emerging from global trade fragmentation. Supply chain executives must now weigh far more complex trade-offs, says Christos Cabolis

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Competitiveness

Strategy

Supply Chain

Browse all topics

Redesign pay incentives - Climate promises into action

By Sara Ratti
in I by IMD

Summary

To turn climate promises into meaningful results, boards must shape pay incentives by embedding environmental targets into compensation packages.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Corporate Governance

Leadership

Regulation

Strategy

Sustainability

Browse all topics

Chugai (C): Navigating the next century of global innovation

By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2711 ©2025

Summary

Chugai C focuses on the company's future as it celebrates its 100th anniversary in 2025. In 2021, Chugai launched its ambitious 'TOP I 2030' growth strategy, aiming to transition from Japan's top innovator to a global leader. The strategy sets two primary targets: doubling RD output and launching one in-house global product annually by 2030. These goals are supported by three key drivers: a RED SHIFT toward early-stage research, comprehensive Digital Transformation DX, and Open Innovation. The case examines the progress made and the significant challenges that lie ahead. These include intense competition from firms in China and India, technological disruption from AI-driven drug discovery, geopolitical risks and cultural barriers to attracting global talent. The central question posed is whether Chugai's proven model for success can sustain its bid for global leadership in an era of unprecedented market shifts.

Reference IMD-2711

Organization Chugai Pharmaceutical

Industry Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Mergers and Acquisitions

Organizational Culture

Global Business

Browse all topics

Chugai (B): Alliance with Roche to be among the best

By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2710 ©2025

Summary

Chugai B examines the pivotal strategic alliance formed in October 2002 between Chugai Pharmaceutical and Swiss giant Roche. Facing constraints in RD funding and global reach, Chugai's President Osamu Nagayama sought a partnership to achieve the firm's ambition of becoming Japan's number one pharmaceutical enterprise while preserving its autonomy. The case examines the unique business model by which Roche acquired a 50.1 equity stake while Chugai retained its management, public listing and corporate identity. This structure created a powerful synergy: Chugai gained exclusive rights to develop and market Roche's innovative products in Japan, while Roche leveraged Chugai's RD pipeline for its global distribution network. The case details how the alliance transformed Chugai from Japan's 10th largest pharma firm into its market leader in oncology and by market capitalization by 2024. It provides a rich context for analyzing how strategic partnerships can bridge resource gaps, foster a 'capability revolution,' and accelerate a company's path to becoming a global innovation powerhouse.

Reference IMD-2710

Organization Chugai Pharmaceutical

Industry Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Mergers and Acquisitions

Organizational Culture

Global Business

Browse all topics

Aprender a desaprender: cómo adaptarse a un mundo que ya no responde a lo esperado

By Martin Fellenz
in I by IMD

Summary

En entornos volátiles, complejos y en constante transformación, la experiencia acumulada puede volverse un lastre difícil de superar.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Change Management

Leadership

Strategy

Browse all topics

AI strategies that are working

By Tomoko Yokoi Michael R. Wade and Jialu Shan
IMD White Paper, November 2025

Summary

IMD’s 2025 AI Maturity Index highlights how leaders of the most successful companies are scaling AI technologies across 10 industries for competitive advantage

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Strategy

Browse all topics

Chugai (A): Overcoming adversity with a transformative leap

By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2709 ©2025

Summary

Chugai A traces the transformative journey of a leading Japanese biopharmaceutical firm from its founding in 1925 to the early 2000s. Starting with founder Jz Ueno's vision to 'create medicines that benefit society,' the case details the company's evolution from an over-the-counter OTC drug importer to a research-driven enterprise. Key milestones include the shift to prescription drugs in the 1960s and a strategic pivot to biotechnology in the 1980s. Despite Japan's limited biotech expertise at the time, Chugai successfully developed groundbreaking therapies by forging global partnerships, such as with the US-based Genetics Institute, and laid the foundation for its leadership in biopharmaceuticals. The case highlights visionary leaders like Jz Ueno, Kimio Ueno, and Osamu Nagayama, who drove pivotal strategic transformations in response to environmental and policy changes from 1925 to the 1990s. The central conflict focuses on how President Nagayama, upon taking office in 1992, navigated the limitations of the traditional business to seize the immense opportunities in biotechnology, ultimately realizing the firm's ambition to become an international enterprise.

Reference IMD-2709

Organization Chugai Pharmaceutical

Industry Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Mergers and Acquisitions

Organizational Culture

Global Business

Browse all topics

Building an IT ecosystem at Intertech

By Murat Tarakci
Case reference: IMD-2698 ©2025

Summary

In April 2021, Sava oban, the newly appointed EVP of Intertech, faces a perfect storm of Turkey's economic crisis and the global scramble for tech talent. This forces him to confront an operational meltdown at Intertech, the IT subsidiary of DenizBank. The massive talent exodus results in a 60 turnover rate, which threatens to derail critical projects as Intertech is now competing with both local firms and global giants hiring remotely during the Covid-19 pandemic. With traditional solutions proving insufficient, Sava proposes a radical strategy: pivoting from being a direct IT provider to an orchestrator of a platform ecosystem. The case challenges participants to map the practical steps necessary to build the ecosystem from the ground up by learning how to create trust with skeptical clients, internal teams and wary partners in the high-stakes fintech sector.

Reference IMD-2698

Industry Information Technology;Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Innovation

Digital

Talent Management

Browse all topics

Building an IT ecosystem at Intertech