Bossard Fasteners (A): Fighting B2B commoditization
As the market leader in fastening technology Bossard maintained a global network of more than 1,800 employees in 50 countries from its headquarters in Zug, Switzerland. The company focused on the supply of fasteners, a process that included sales, technical and engineering support and inventory management. Its business model also spanned three strategic areas: product solutions, application engineering and logistics. Bossard enjoyed a very strong value proposition if its account managers could only access engineers, quality managers, heads of operations, research and development (R&D) departments and business owners who understood the total cost of ownership (TCO) concept. If it had to submit a quote in response to an RFP (request for proposal) and bid for a given list of parts, the customer’s procurement department might simply compare prices, and Bossard typically was not the cheapest provider. Competitors also had copied Bossard’s logistic system and claimed that they could offer similar solutions for lower prices. Anecdotal evidence suggested that most competitors’ solutions were less reliable and accurate than SmartBins and that their data integration workflows did not work as well. In a manufacturing world where global competition, commoditization and strategic procurement puts suppliers under constant margin pressure, how was it possible that a Swiss-based fastening supplier could grow profitably with an EBIT (earnings before interest and taxes) margin of 12.3%, significantly above industry benchmarks?
- How to build a competitive advantage in a tough B2B market through differentiation.
- How to craft different value propositions to different clients.
- How to design a strategy that addresses the main obstacle in the market, i.e. commoditization.
- How to create new “to-to-market” strategies to avoid a price war by not focusing on requests-for-proposals (RFP) and competitive submissions.
Bossard Holding
2017-2018
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
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 related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
The case study delves into strategic transformation and leadership transitions at Unilever since 2009. Unilever has been an industry leader of busi...
The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight....
The case is seen through the eyes of the newly appointed supply chain director at a cosmetics company based in Berlin. The general manager has task...
Few Business to Business (B2B) marketplaces have succeeded. Metalshub has successfully combined a software platform as a service, with a marketplac...
The case focuses on Contabilizei, a Brazilian startup providing online accounting services for small and medium-sized enterprises (SMEs). The case ...
Companies that modularize and externalize their best capabilities are in a strong position to seize unexpected opportunities. Prediction is hard. T...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 24 June 2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2457 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2546 ©2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in MIT Sloan Management Review Summer 2024, vol. 65, no. 4
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications