Miele case study

1. What are the key resources that have made Mille a successful company so far? Which of these are marketing assets?
2. Mille are now facing more and more competition in a changing market. Do their resources provide them with a sustainable competitive advantage?
3. What new resources might they need to develop/acquire to remain successful in the future?

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Answers:

1. The key resources that have made Mille successful are an integration of tangible, intangible and organizational capabilities.

   Particularly, the firm is oriented around the customers and their consumption habits, and focuses on providing higher laity, more innovative and better for the environment than their rivals, responding and forecasting consumer needs. They have dynamic marketing capabilities, so the key resources can be divided into organizational, technological, intellectual and human, and financial. These can be placed under each category, as marketing assets: Customer-based assets: Brand; Reputation; Product based on the value of quality, innovation, sustainability and “green”. Internal support assets: Technical skills; R&D; Intellectual and human. Supply-chain assets: Distribution strength; Fairly rated workforce, Patents, Environmental protection, Safe appliances.

2. At least in the next few years Mille have to fend off more competitors at the top end of white goods market, moreover, to interest new generations of increasingly cost-conscious consumers.

   However, a well-strategic combination of Mile’s resources and their dynamic marketing capabilities can help them maintaining a sustainable competitive advantage. “They have a focus and a single-mindedness which I think will ensure they can continue to do well. Thirty years ago people were asking the same questions and they have come through. The company has shown that making things in Germany can-in the right product area- still act as an advantage” said Hermann Simon.

3. Mille is successful thanks to their good exploitable combination of the firm’s resources and the innovation. However, one thing that may make a strain for them in the future is their high production costs.

   Good new is that, with their existing resources and the capabilities to employ and develop them to a new level, it is Just an issue for the company to transform that into cost advantage.