Strategic issues of Xiameter

• New challengers in the same customers segment (price seekers) with PoDs

• Xiameter is situated in a maturity stage of PLC

• No cannibalization of Dow Corning’s target segments

STRENGTHs WEAKNESSES

- Market leader

- Quality product

- Low price

- Leader in the Lead-

times

- Minimum quantity

for an order

- No technical

service

- Limited kind of

products

OPPORTUNITIES THREATS

- Offer more kinds of

products (no

special silicon

products)

- More loyal

customer

- New challengers

with more service

and no minimum

limit

- Differences in

silicon demand =>

various prices of

raw material =>

thread for long time

contracts

ANALYSIS

CHALLENGER’S PoDs XIAMETER’S PoDs

- Simple on line service

(one to one technical

service and real time

monitoring of the

order)

- No minimum quantity

limit

- Lower price

- The goodwill from

Dow Corning

- Leader in the Lead

times

Recommendation

Application of a Marketing Program Modification:

Change of the challenger’s points of difference into competitive points of parities:

implementation of basic online services (maybe optional service packages) to keep up

with the competitions, but with no major change in silicon product prices or Xiameter’s

strategy. No minimum limit for the order.

Different range of products from Dow Corning: offering limited products (350 versus

7500)

Application of a Defensive Marketing Strategy: Position Defense: maintain advantage by the lower price of the market and the goodwill

of Dow Corning