Description
This case explores the strategic decision-making process of premium power tools manufacturer Hilti in 1999, when the company was considering implementing a fleet management system in the construction industry. Fleet management would involve a shift from selling power tools to leasing them as a service. For Hilti, it represented an entirely new business model, which would substantially differentiate the company from its competitors. While fleet management had the potential to significantly improve the customer experience, Hilti was already a successful firm under its extant model, and had to decide whether the restructuring of its business model was worth the risk. This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.