Orica Mining Services Harvard Case Solution & Analysis

IMD-5-0725 © 2007
Ryans, Adrian; Sequeira, Stephanie Maria

In the 1990s, cut-throat competition from low cost competitors in the explosives industry was critically impacting Orica’s Mining Services’ (then ICI Australia) profitability. Orica transformed its business model from selling commoditized products to selling solutions packages. It focused on solving the customer’s issue, not just on providing a solution to part of the problem.

Because of this it transformed itself from being a solid player to being the pre-eminent player in the marketplace, and was in considerably less direct competitors with low cost players worldwide. Learning objective: Illustrate one approach to satisfying the commoditization challenge.

Subjects: Explosives; Mining industry; Price competition; Commoditization; Solutions package; Tailor make; Drilling; Technical consulting; Transform business model; Solving the customer’s problem; Consolidation
Settings: Australia; Western Europe ; Mining Services ; A$ 2.6 billion (Mining Services) ; 1990s

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