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What service transition?: Rethinking established assumptions about manufacturers’ service-led growth strategies

Industrial marketing management, 2015-02, Vol.45, p.59 [Peer Reviewed Journal]

ISSN: 0019-8501 ;ISSN: 1873-2062 ;EISSN: 1873-2062 ;DOI: 10.1016/j.indmarman.2015.02.016

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  • Title:
    What service transition?: Rethinking established assumptions about manufacturers’ service-led growth strategies
  • Author: Kowalkowski, Christian ; Windahl, Charlotta ; Kindström, Daniel ; Gebauer, Heiko
  • Is Part Of: Industrial marketing management, 2015-02, Vol.45, p.59
  • Description: Both academics and practitioners emphasize the importance for product firms of implementing service-led growth strategies. The service transition concept is well established, namely a unidirectional repositioning along a product-service continuum—from basic, product-oriented services towards more customized, process-oriented ones—ultimately leading to the provision of solutions. We challenge this service transition assumption and develop alternative ones regarding how product firms should pursue service-led growth. Using ‘problematization methodology’, and drawing on findings from thirteen system suppliers, we identify three service-led growth trajectories: (1) becoming an availability provider, which is the focus of most transition literature; (2) becoming a performance provider, which resembles project-based sales and implies an even greater differentiation of what customers are offered; and, (3) becoming an ‘industrializer’, which is about standardizing previously customized solutions to promote repeatability and scalability. Based on our critical inquiry, we develop two alternative assumptions: (a) firms need to constantly balance business expansion and standardization activities; and (b) manage the co-existence of different system supplier roles. Finally, we consider the implications for implementing service-led growth strategies of the alternative assumptions.
  • Language: English
  • Identifier: ISSN: 0019-8501
    ISSN: 1873-2062
    EISSN: 1873-2062
    DOI: 10.1016/j.indmarman.2015.02.016
  • Source: SWEPUB Freely available online
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