Market Making of a High-value Business Model in Low Cost Markets

Purpose and goal

The purpose of the project is to analyze the value of the extended service business model based on an international comparison study of the development and experiences in four main markets. We explore value creation in terms of product, service and the supply chain. A complex set of drivers explain but do not fully predict whether a buyer will focus on short-term cost, lifetime cost or a combination of cost and value provided. Finally, we show how the interaction patterns with the customer and the way the heavy vehicle and transport markets interact.

Results and expected effects

In terms of the industry the results are input to training materials for the industrial partner. The workshops and ongoing activities in the project have drawn attention to the concept of extended service models and value. Project results have been used in teaching. A handful of student groups have also written their thesis on topics either inspired by or directly generated by the project, some obtaining data through the project itself. Publications from the project will represent the more general contribution to advancing theory in the area.

Approach and implementation

The primary source of data in the project has been interviews and observations in four different market contexts around the industrial partner Scania. The substantial participation of the industrial partner in the project has been important not only for data collection but also for discussion and interpretation of the results. Participation from other parties such as transporters, logistics firms and industry experts has generally been very good. Results have been discussed and refined through workshop discussions and academic publications.