Dow Corning Case

Dow Corning Case - 1 The Dow Corning Corporation Story. The...

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1 The Dow Corning Corporation Story. The following case of Dow Corning Corporation , appeared in Value Based Marketing for Bottom-Line Success , by Nicholas DeBonis, Eric Balinski, & Phil Allen, published by McGraw-Hill and the American Marketing Association, 2003 . Case written by: Eric Balinski, President- Synection™ ebalinski@synection.net July 30, 2002 Connecting Business to Customers
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2 CASE: DOW CORNING In 1930, Corning Glass Works began the development of a new material made from sand that combined some of the best properties of glass and plastics. Over the next decade, Corning scientists worked with the scientists at the Mellon Institute of Research in Pittsburgh to develop the promising innovation. Dow Corning was formed in 1943 as a start up, 50/50 joint venture between Corning Glass and the Dow Chemical Company to explore and develop the commercial potential of the new technology. Over the coming decades, Dow Corning grew to be one of the most successful business joint ventures of all time with $2.5 billion in sales and 7,500 employees worldwide. Throughout its history, Dow Corning pioneered the development of silicon technology innovations to be used in applications as diverse as sealants and gasket waxes and polishes, textiles and water repellent treatments, pulp and paper processing, and skin care and anti perspirants. Today, Dow Corning is the largest global producer of silicon based materials, offering more than 7,000 different silicon based products and services. It competes against some tremendous competitors, including GE and Bayer. Historically, its strategy was focused on innovation and new customer applications. It focused and organized to dominate the segment (DTS) for customer innovation. That is the DTS strategy for Dow Corning was focused on developing a superior value for one specific customer segment and grow its business by growing within this segment. Corning grew through discovering and delivering the most advanced technology for demanding customer applications, achieving 4,800 active patents worldwide. As such, the company was customer focused before it was fashionable to be so. CHANGE IN THE MARKET SITUATION FOR DOW CORNING All market innovations inevitably mature. For a market innovator like Dow Corning, growth resulted in two businesses within one business model. In addition to business growth it achieved through innovation, Dow Corning also grew from maturing innovations that were becoming widely used in the marketplace. The latter matured to become Dow Corning ʹ s core business that loaded its sales statements and manufacturing facilities. It also attracted competition that ultimately exerted pressure on its pricing and cost position. More insidious were the market forces that created a gap between what its maturing
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This note was uploaded on 09/05/2011 for the course ECO 103 taught by Professor Mary during the Spring '11 term at FH Joanneum.

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Dow Corning Case - 1 The Dow Corning Corporation Story. The...

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