WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 18, 2021
A Methodology of Strategic Analysis for Servitization of the Manufacturing Company
Author:
Abstract: Servitization in manufacturing companies often involves reformulating or building new strategies. It is a complex and challenging process that is very prone to failure if carried out without careful strategic planning. The scientific literature strictly regarding strategic analysis methodology in the context of servitization is rather limited. Only a few studies were identified which indicate strategic analysis methods that are useful for building servitization strategies. Whereas the catalog of methods for strategic analysis is wide and varied. Therefore, this study aims to fill this gap and give an answer to the following research question: How to conduct a strategic analysis (with which methods and tools) so that the obtained information would improve the decision-making process in the context of servitization in manufacturing? A survey conducted in the Polish machinery manufacturing sector shows that there is a relationship between conducting strategy analysis in the context of product-service activity and the level of service income in manufacturing companies. Likewise, if the company analyzed service-related business areas along with the product-related, it has reported an increase in service income in recent years. Based on these findings and the outcomes of the review of servitization strategies and the conditions of successful implementation of these strategies, the author developed an 8-stage methodology of strategic analysis. It enables to gather the most relevant and needed information about the company resources and its environment to facilitate making decisions in the context of product and service integration. An original tool for assessing the orientation of organizational culture is proposed. The developed methodology was verified by application in two manufacturing companies, and that allowed to formulate a list of recommendations for future application of the methodology.
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Keywords: servitization, servitization of manufacturing, strategic analysis, product-service integration methodology, strategic management
Pages: 126-138
DOI: 10.37394/23207.2021.18.14