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But increasing competition, rising costs, and more importantly commoditization of products put some pressure on prices. The company's profits were stable in 1997-1998 ($2500-2600 millions) and net income was flat ($-600 million in 1998 and $100 million in 1999). Therefore, Dow Corning needed to find new ways to address its changing environment.
To evaluate the customer needs, the company came up with a new segmentation study which revealed a segment of customers who didn't want to pay for the added services traditionally offered with silicone products. Dow Corning needed to adapt its strategy to meet the needs of this fast growing segment...
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