Servitization in Danish Manufacturing Firms: A Strategy for Survival?

This paper focuses on servitization, i.e. re-focusing of firms from running fabrication and assembly processes to developing integrated product solutions with a large service component. The phenomenon has been recognised in the literature (e.g. Neely, 2008; Baines et al., 2009; Schmenner, 2009) and by many traditional manufacturers is perceived as a strategy for survival. On the basis of multiple cases of Danish companies, this paper discusses the main reasons and strategic implications of servitization. Furthermore, it outlines the strategies of how traditional manufacturers can recoup the desired level of return from the developments associated with servitization.