Dow Corning's business model successfully resolve a crisis-Iota

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News > Dynamic industry > Dow Corning's business model successfully resolve a crisis

Dow Corning's business model successfully resolve a crisis

2002, the world's leading manufacturer Dow Corning silicone products, the business model is facing a crisis. Dow Corning's business model is to provide customers with high-end design, personalized sales support and flexible service. However, price-sensitive customers require high quality, reliable product but the price is not high. Therefore, it ceded the market of low-cost overseas competitors.
In order to win back the low-end market, Dow Corning established a new company Becora Limited, for the price-sensitive market segments customize a low-cost business model. By reducing technical services, will extend the delivery time from several hours to several days, the number of options for order processing and customs restrictions and other measures, Dow cut a huge amount of cost of sales and distribution costs. Scalable online ordering system also enables Dow Corning benefited all communication with customers is done via e-mail. This new model can be generated, it is because the company keen to find 70% of the market need for such high-tech personalized sales model.

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