Ref: IMD-3-2354

Case study

Reference: IMD-3-2354

Order this case study


Hilti fleet management: Strategically moving from products to B2B solutions

This case study illustrates how a product manufacturer moved into the solution space by redefining its business model and by overcoming typical obstacles and drawbacks on the journey. Hilti is a world-leading manufacturer of power tools and fastening and protection systems, mainly for the construction industry. Back in 2001, the Hilti Swiss Market Organization team launched a new concept. Instead of selling power tools to its customers, the Fleet Management (FM) offering would allow customers to use a defined set of tools (i.e. a tool fleet) for a fixed period of three to five years for a fixed monthly rate. Not only would FM deliver many benefits to Hilti’s customers, it would also allow Hilti to cooperate even more closely with its customers and raise the barrier for the competition while ensuring a consistent revenue stream. Although FM builds upon a sequence of tool-related service innovations, such as the introduction of Warranty Certificates in 1992, three-year full service for breakers in 1996, and a six-month repair guarantee in 1997, its nature and impact were much more revolutionary in the power-tool industry. Market development, increasing customer need for productivity and risk reduction, as well as the capability of a supplier to deliver a strong value proposition started a fairly unique success story that is – even after more than 10 years – a state-of-the-art example of business model innovation.
KeywordsBusiness Model Innovation, Fleet Management, General Management, Innovation Leadership, Value Proposition
SettingsGlobal, Liechtenstein
Hilti
2001-2012
TypeField Research
Copyright©2013
LanguageEnglish
Order this case study

Reference: IMD-3-2354

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
Fax +44 (0)1234 751125
Email info@thecasecentre.org

The Case Centre Babson College

Babson Park Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email info.usa@thecasecentre.org

Harvard Business School Publishing

60 Harvard Way Boston, MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email custserv@hbsp.harvard.edu

Case Center Japan

2nd Floor, Toranomon Jitsugyokaikan,
1-1-20 Toranomon, Minato-ku,
Tokyo 105-0001 Japan
Tel +81 3 3503 6621
Fax +81 3 3501 0550
Email info@casecenter.jp

Copyright information

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, please contact our Information Center.

Do you need more information?
Contact us for additional information or republishing

Case study

Reference: IMD-3-2354

Order this case study

Looking for something specific?

Keep reading

Back to top