Case Study Of The Michelin Pax

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Executive summary

Innovation according to (Schumpeter, 1997) is the process of producing and applying new and creative ideas to products or processes in order to create value for customers. This can mean an introduction of an entirely new product or system of supplying goods and services or an improvement of an existing one.
Although most innovations succeed, others fail and there are a lot of factors that can be attributed to that failure. These factors can be firm related, project related, product related or even market related (Van Der Panne, 2003). Firm related factors may be due to the firm’s culture and principles where the firm was not willing to change the way they do things and the firm’s strategy to the innovation.
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With PAX, Michelin tried an approach quite different from other run-flat tires. Firstly, unlike other run-flat tyres, the PAX had to be incorporated into cars, which meant that car manufacturers had to be brought on board with the innovation. The cars which carried the PAX had a combination air valve / pressure detector which reported pressure loss to an indicator on the dash so that the driver knew that there was a problem (Ofria, 2005) . This made these cars safer. In addition, this type of tyre was designed with extra-strong sidewalls to help support the vehicle if the air escaped. With PAX, Michelin used a supportive ring made of polyurethane inside the tire. Michelin said the ring meant the sidewalls did not have to be so stiff, preserving ride comfort, this meant that if the tyre went flat, the vehicle would still be safe to drive for 125 miles(at approximately 180km) at speeds up to 55 m.p.h.(at approximately…show more content…
This proved that it doesn’t only take a great and creative idea for an innovation to be successful. For Michelin, execution wasn’t enough as their success relied on others. It relied on the full ecosystem to fully embrace it, such as suppliers and distributors who pilot your product through to the retail channel where consumer are met with decision to purchase or not, as seen on the figure above. In this way the system would see a rapid takeover rather than the slow one it had even after entering into an alliance with other leading tire manufacturers. (Adner,

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