Introducing purchasable technical service packages in a productoriented organization - A Go-To-Market Study -

Abstract

This study examines the development of a go-to-market plan for service offerings in a product centric company. Servitization is a phenomenon where many firms see great potential to strengthen their market position and simultaneously create additional value to increase revenue. The company in the study has an existing range of services that are offered mostly free of charge to justify a premium price for its products. The company operates in a business-to-business market. To find partners willingness to pay for services, one must analyse the market demand and identify what services provides sufficient value for partners. The study is based on qualitative research methodology. The investigation includes both internal company and external data to ensure a greater understanding of the studied topic. Data was collected from the company itself, semi-structured interviews with second tier partners, as well as a best practice benchmark. Throughout the research process an abductive approach was used. In conclusion, there is a variety of service offerings (both existing and new) that show value which has potential to create packages that the company’s partners are willing to purchase. Three different service package offerings are recommended in combination with stand-alone offers. The standard package is means to be free of charge to keep the company’s competitive advantage and focus on delivering competence. Two premium packages are based on a subscription model in order to generate revenue and ensure delivery of service value through speed. In addition, to the large demand differences on the market, a stand-alone offer of services cope with flexibility and adaptation for the three packages.