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Miele Case Study, Family tradition in domestic

partnership
Analysis and Evaluation 2 (BMAM 52301)
Under Supervision of: Dr. Mohamed Kesseba
Submitted by: Norhan Ayman
Date: 24/11/2020
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1- What are the key resources/capabilities that have made Miele a successful company so far? Which
of these are marketing assets?
The key resources that have made Miele successful are a mix of tangible, intangible and organisational
capabilities. In particular, the company is oriented around the customer and their consumption habits and
focuses on providing higher quality, more innovative, and “greener” products than their competitors,
responding and forecasting consumer needs. They have innovative market capabilities; these capabilities
summarize in company 4Ps. So the key resources can be divided into physical, reputational, organisational,
financial, intellectual and human, and technological. These can be placed under each category, as marketing
asset: Customer-based assets: Brand; Reputation; Product based on the value of quality, innovation,
sustainability and “green”.

Internal support assets: Technical skills; R&D; Intellectual and human. Supply-chain assets: Distribution
strength; Fairly treated workforce, Patents, Environmental protection, Safe appliances.

2 Miele are now facing more and more competition in a changing market? do their
resources/capabilities provide them with a sustainable competitive advantage?
At least in the next few years Miele have to fend off more competitors at the top end of white goods
market, moreover, to interest new generations of increasingly cost-concious consumers. However, a well-
strategic combination of Miele’s resources and their dynamic marketing capabilities can help them
maintaining a sustainable competitive advantage. “They have a focus and a single- mindedness which I
think will ensure they can continue to do well. Thirty years ago people were asking the same questions
and they have come through.

3 What new resources/capabilities might they need to develop/acquire to remain successful in the
future?

Miele is successful according to their good exploitable combination of the firm’s resources and the
innovation. However, one thing that may make a strain for them in the future is their high production
costs. Good news is that, with their existing resources and the capabilities to employ and develop them to
a new level, it is just an issue for the company to tranforrm that into cost advantage. For example, they
could improve technology to cut the cost.

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