Transitioning from product provider to service provider through dealers

Typ
Examensarbete för masterexamen
Program
Management and economics of innovation (MPMEI), MSc
Publicerad
2022
Författare
Daebes, Meryem
Landin, Jonatan
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The manufacturing industry has traditionally developed and produced tangible goods and operated through either direct or indirect sales via intermediaries. However, differentiating through low prices, product innovation and technological superiority has become more difficult and traditional services such as maintenance and repair are no longer enough to meet end customers’ demands. Consequently, manufacturing firms are required to develop strategies that include services that assist the end customer after the sale. As a result, servitization has emerged as a trend in the industry in recent years. Albeit the challenges of servitization having been addressed in previous research, there is limited research on servitization through dealers. Furthermore, previous research is also limited in the challenges encountered by a manufacturing company when transitioning from product provider to service provider through a network of dealers. Thus, the purpose of this master thesis is to investigate what challenges there are for a manufacturing firm transitioning from a product provider to a service provider through a network of dealers. The investigation aims to provide a manufacturing firm with recommendations on how the identified challenges can be managed. This master thesis is a qualitative case study research of a single case company in question. Interviews with the company and their network of dealers were used to acquire primary data. A literature review of servitization and organizational change was conducted to provide a secondary data source. The findings of this master thesis suggests that many of the challenges that are encountered when a manufacturing company introduces an integrated service solution to their dealers concurs with the previous findings in literature regarding challenges in the adoption of servitization. These challenges are connected to the lack of adequate supporting systems for the dealers, uncertainties regarding the transition and what benefits and investments there are for the dealers as well as a lack of service thinking mindset throughout the network. Furthermore, based on the findings of the master thesis the recommendations to practitioners are the importance of open communication, implementing the right mindset throughout the network and not only within the organization, and having adequate supporting systems in place when transitioning from a product provider to a service provider through a network of dealers.
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servitization , servitization in manufacturing firms , servitization challenges , servitization and dealers , integrated service offering
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