Authors: V.T. Rakesh; Preetha Menon
Addresses: Symbiosis International (Deemed University), Pune, Maharashtra, India ' FLAME School of Communication, FLAME University, Pune, Maharashtra, India
Abstract: Servitisation is a business strategy adopted by companies worldwide. This paper attempts to find out whether servitisation is a runaway success and if not, the reasons for holding it. Further it is explored whether servitisation help improve the ecological well-being of a country. Methodology adopted was a systematic literature review. Results show that servitisation has been successful but not to the extent of companies adopting it as a blind strategy. Among the factors that led to its failure, pricing was the prominent factor as branded companies compete with local unorganised service providers. A pricing model incorporating brand equity would make it possible for branded companies to price their services right the first time itself. Researches show that the current cases of servitisation do not add much value towards the cause of ecological sustenance. But they also say that servitisation and sustainability complement each other, and commercial success of servitisation will enhance sustainability and therefore circular economy.
Keywords: servitisation; brand equity; customer equity; pricing models; industrial services; services marketing; deservitisation; circular economy; sustainability; ecological sustenance.
World Review of Entrepreneurship, Management and Sustainable Development, 2022 Vol.18 No.1/2, pp.137 - 155
Received: 08 Feb 2020
Accepted: 08 Mar 2021
Published online: 08 Feb 2022 *