Abstract

The case is based on Hilti Hong Kong, a subsidiary of Hilti Group, a privately-held supplier of power tools and fasteners to the construction and energy sectors. The service-oriented company is wrestling with how locally to relaunch Fleet Management (FM), a service model that effectively transfers the customer's tool management risk to Hilti's balance sheet without the customer owning the tools at the end of the contract. FM is designed to provide business end-users, that is, construction firms, with greater tool transparency, increased on-site productivity, cost management, and back office efficiency gains. By September 2015, however, FM in Hong Kong is languishing and Roland Li, head of Electric Tools & Accessories (ET&A) is challenged to present a proposal to relaunch FM by packaging a market penetration strategy and operational advice to the local management board.

Learning Objectives

The case explores the three basic components of a business model: customer value proposition, profit formula, and key resources and processes. The case's two key objectives provide students with: (1) an understanding of the significance of change management to revamp a business model and (2) pathways of how change management can be a bridge between the diagnosis, design, and implementation of corporate strategy and local tactics.

Company/Organization	Hilti
Industry	home construction
Major Discipline	General Management
Subject(s)	Hilti, Business model, Change management, Corporate strategy, Customer value proposition, Key resources and processes, Local tactics, profit formula
Geography	Hong Kong
Case Nature	Field
Page count of the Case	23
Teaching Notes	10
Publisher	HKUST