Business model evolution of customer care services
|Author:||Majava, Jukka1; Isoherranen, Ville1|
1University of Oulu (Finland)
|Online Access:||PDF Full Text (PDF, 0.2 MB)|
|Persistent link:|| http://urn.fi/urn:nbn:fi-fe201903128685
|Publish Date:|| 2019-03-12
Purpose: Servitization is a rising trend as companies look for new revenue streams. This paper presents a study of customer care business model evolution in the smartphone industry. The paper identifies key changes in the business models during recent years and their implications for companies seeking after-sales service excellence and new revenue sources.
Design/methodology/approach: The research approach is built on the literature of product-service offerings, servitization, and business models. The empirical part is based on a multiple case study of former Nokia mobile phone business, the Apple iPhone, and Google Android.
Findings: Three different customer care business models and an analysis of the changes in the smartphone industry are presented. This paper demonstrates how after-sales services have become increasingly important in generating new revenue. Moreover, the nature of after-sales services has fundamentally changed in the industry.
Research limitations/implications: Due to the careful selection of the cases that represent the studied industry well, the results provide valuable insights for practitioners and researchers involved in developing after-sales service offerings in the mobile industry. However, a case study research approach may not offer a generalized picture of this phenomenon in other industries.
Originality/value: A novel analysis of customer care evolution in the smartphone industry is presented. In addition, the study demonstrates that applying the concept of business models to after-sales services provides new insights into these services and their roles in business.
Journal of industrial engineering and management
|Pages:||1 - 12|
|Type of Publication:||
A1 Journal article – refereed
|Field of Science:||
222 Other engineering and technologies
512 Business and management
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