Developing Service Strategies in Support of Servitization in China: An Exploratory Study

Literature on servitization advocates that Western manufacturers move downstream and provide value-added services as differentiator from low cost competition from emerging markets. The literature however remains relatively silent on how Western manufacturers are exploring servitization in emerging economies. This paper attempts to begin bridging this gap by exploring attempts by a European manufacturer to expand services in China. Particular attention is given to the role of the service partner network in attempting to grow and deliver services. Based on an exploratory case study, we examine how the case company was attempting simultaneously to pursue multiple strategies in support of servitization.