Michelin 2018

Abstract

In May 2018, Florent Menegaux was voted in as Michelin’s new CEO, marking a turning point for the French tire manufacturer who had been led by Jean-Dominque Senard since 2012. During the past years, Michelin had maintained a solid financial position and had strengthened its global footprint. Yet sluggish growth and the rapidly changing environment – increased competition, stagnant growth in the tire market, new customer expectations, and the rise of new technologies – pushed Menegaux to define a new direction for the French tire company. A product-focused strategy was no longer relevant for the future as he set out to diversify Michelin’s growth and expand more quickly in new markets and segments. However, Michelin was a 130-year-old industrial company with strong embedded traditions and values. If it was expected to keep up with the fast-paced environment and carry out the new strategy, Menegaux was convinced that a profound transformation was needed – both on a managerial and cultural level. As he makes plans for his first year in office, several questions are raised for the newly appointed CEO. Does he have the right strategy moving forward? How can he implement the necessary change within the organization? How can he create the conditions and the framework so that people can adapt their behaviors while upholding the Michelin identity? This case study will start by exploring Michelin’s rich history and the evolution of the tire industry in recent years. It pursues by analyzing the company’s strategy under Senard and the initiatives that were taken in order to maintain a competitive position. Finally, it puts Menegaux in a situation where he is faced with potential levers that can be worked on in order to move forward with the transformation.

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