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 of any company include assets and capabilities. The key resources that have made Miele
successful are a mix of tangible, intangible and organisational capabilities. In this respect, Miele can be
analysed as a brand whose customer based assets include strong company name and reputation based on
high-quality products resulting in customer loyalty. In other words, the fact that the company spends more
on innovation, research, development, and customer relationship management benefits its success in the
market.
Internal support and supply chain assets include machines and mechanisms, buildings, and research centres
whereas alliance-based assets establish company’s relations with all branches that take part in the
manufacturing process making all plants that are situated outside the main area of Miele’s activity produce
goods under the same brand.
Strategic capabilities of Miele are based on the company’s traditions and implementation of new
technologies in operation. Functional capabilities include Miele’s manufacturing of high-quality goods
though they do not try to compete at a price level selling their goods at appropriate cost. Operational
capabilities include high-end goods and plans of the company for the future.
2- Miele are now facing more and more competition in a changing market? do their
resources/capabilities provide them with a sustainable competitive advantage?
Competition that takes place in the changing market has little relation to what Miele is going to achieve
because the company is aimed at production of high-end goods that serve for long periods of time
compared to those produced by competitors.
In this respect, trying to compete for a price will make Miele’s products of lower quality discouraging
loyal customers and people that wanted to buy products under this brand for their high quality from doing
so. In other words, Miele can compete for a price but it also can sustain its position in the market which is
unique and remain a manufacturer of high-end products, home appliances, and other equipment.
So, 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.
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3- What new resources/capabilities might they need to develop/acquire to remain successful in the
future?
Miele is a successful brand due to the unique niche it occupies in the global market contrasted to is
competitors. Though some customers are ready to buy rather expensive products as investment in the future
operation period, it is necessary to introduce changes concerning the resources spent on production of
expensive goods.
In other words, Miele’s target audience includes people that realise the benefits of such appliances or those
who seek for prestigious tools (tools that are claimed to be prestigious to have produced under a definite
brand).
So, it is possible to reduce costs on production of ‘luxurious’ tools and make the products manufactured for
ordinary people, that want to invest in appliances as a good method of economizing, more available in
terms of costs.
