University of Oulu

Majava, J., & Isoheranen, V. (2019). Business model evolution of customer care services. Journal of Industrial Engineering and Management, 12(1), 1-12.

Business model evolution of customer care services

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Author: Majava, Jukka1; Isoherranen, Ville1
Organizations: 1University of Oulu (Finland)
Format: article
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 0.2 MB)
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Language: English
Published: OmniaScience, 2019
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.

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Series: Journal of industrial engineering and management
ISSN: 2013-8423
ISSN-E: 2013-0953
ISSN-L: 2013-8423
Volume: 12
Issue: 1
Pages: 1 - 12
DOI: 10.3926/jiem.2725
Type of Publication: A1 Journal article – refereed
Field of Science: 222 Other engineering and technologies
512 Business and management
Copyright information: © 2018 The Authors. Article’s contents are provided on an Attribution-Non Commercial 4.0 Creative commons International License. Readers are allowed to copy, distribute and communicate article’s contents, provided the author’s and Journal of Industrial Engineering and Management’s names are included. It must not be used for commercial purposes. To see the complete license contents, please visit