(Non) - Demand driven servitization: strategic implications for suppliers from incorporating their customers up front

Abstract

This research explores customers’ need of and readiness to adapt to a servitization move of their supplier. Insights are gathered from 14 in-depth interviews with customers, consultants, and employees of one of the largest animal health suppliers worldwide. The semi-structured interviews allowed for an open exchange of opinions before a possible move towards a stronger service orientation by a supplier. From these interviews, eight dimensions are deemed important to evaluate options for a servitization of the supplier’s business. Findings show that services are considered to become increasingly important in the future but that a goods-dominant logic is still dominant in the industry. The need and readiness for a servitization are estimated differently by the three interview groups. Insights from these different perspectives motivated strategic implications for the supplier for an implementation of a stronger service orientation. Furthermore, these implications are translated into a fivestep proposition path: Cohesion, Education, Appreciation, Deprivation, and Preparation.