Skip to main content

Designing Competitive Service Models

  • Chapter
  • First Online:
Service Design and Delivery

Abstract

The explosives developed in Europe in the late nineteenth and early twentieth ­century by the famous Swede and patron of the world peace prize, Alfred Nobel, were extremely durable and, apart from the introduction of the electric detonator, have remained in use with minor modifications for almost a century (Fig. 5.1a). In the 1970s a new invention started a process of change that has transformed the explosives business from being a supplier of products to a provider of a service. Survival very much depended on the agility of ICI Explosives UK, hereinafter referred to as “ICI Explosives,” in adapting to the new competitive environment. Manufacturing excellence was not a solution. Innovative thinking was required to sustain the ­business as changes in technology reduced the complexity that had ­protected the business from serious competition for over a century.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Bower M, Garda RA (1985) The role of marketing in management. The McKinsey Quarterly, Autumn 34–46

    Google Scholar 

  • Cusumano MA (2004) The Business Software. Free Press New York

    Google Scholar 

  • Cusumano MA (2008) The Changing Business of Software: Moving from Products to Services, IEEE Computer, 41:20–27

    Google Scholar 

  • Gebauer H, Fleisch E, Friedli T (2005) Overcoming the Service Paradox in Manufacturing Companies. European Management Journal. 23(1):14–26

    Article  Google Scholar 

  • Gronroos C (2006) Service management and marketing: a customer relationship management approach. 2nd ed., Wiley. Chichester

    Google Scholar 

  • Gummesson E (1995) Relationship marketing: Its role in the service economy, in Glynn, W. J. and Barnes, J. G. (eds.) Understanding services management (244–268), John Wiley & Sons, New York

    Google Scholar 

  • Huff AS, Floyd SW, Sherman HD et al (2009) Strategic Management: Logic and Action John Wiley Sons, New York

    Google Scholar 

  • Kim CW, Mauborge R (1999) Strategy, Value Innovation, and the Knowledge Economy. Sloan Management Review, Spring 41–54

    Google Scholar 

  • Macdonald E, Martinez V, Wilson H (2009) Towards the assessment of value-in-use of product-service systems: a review. Performance Measurement Association Conference, Dunedin, New Zealand, University of Otago

    Google Scholar 

  • Martinez V (2003) Understanding Value Creation: The Value Matrix and The Value Cube, Strathclyde University Scotland UK, PhD Thesis

    Google Scholar 

  • Martinez V, Bititci U (2006) Aligning value propositions in supply chains, International Journal of Value Chain Management. 1(1):6–18

    Article  Google Scholar 

  • Martinez V, Neely A, Ren G et al (2008) High value manufacturing- delivering the promise, AIM report ISBN 978-1-906087-15-9

    Google Scholar 

  • Neely A (2007) Servitization of Manufacturing: an analysis of global trends. 14th EUROMA Conference, Conference Proceedings

    Google Scholar 

  • Normand R, Ramirez R (1993) From value chain to value constellation: designing interactive strategy. Harvard Business Review, July-August:65–77

    Google Scholar 

  • Payne A, Holt S (2001) Diagnosing customer value: integrating the value process and relationship marketing. British Journal of Management, 12:159–182

    Article  Google Scholar 

  • Ramirez R (1999) Value co-production: intellectual origins and implications for practice and research. Strategic Management Journal 20:49–65

    Article  Google Scholar 

  • Reinartz W, Ulaga W (2008) How to sell services more profitably. Harvard Business Review, 86(5):90–96, 129

    Google Scholar 

  • Silvestro, Fitzgerald, Johnson et al (1992) Towards a classification of service processes. International Journal of Service Industry Management 3(2):62–75

    Google Scholar 

  • Treacy M, Wiersema F (1993) Customer intimacy and other value -Disciplines. Harvard Business Review, January-February 84–93

    Google Scholar 

  • Treacy M, Wiersema F (1996) The disciplines of the market leaders. Harper Collins, Hammersmith

    Google Scholar 

  • Turner TJ (1998) From a hard place to rock on the ground. Agility and global competition, (4):18–22

    Google Scholar 

  • Vargo SL, Lusch RF (2004) Evolving to a new dominant logic for marketing. Journal of Marketing, 68:1–17

    Article  Google Scholar 

  • Vargo SL, Lusch RF (2006) Service-dominant logic: What it is, what it is not, what it might be, in Lusch, R. F. and Vargo, S. L. (eds.) The service-dominant logic of marketing: dialog, debate, and directions. Sharpe, New York

    Article  Google Scholar 

  • Vargo SL (2008) Customer integration and value creation. Journal of Service Research. 11(2):211–215

    Article  Google Scholar 

  • Woodruff RB (1997) Customer value: the next source for competitive advantage. Journal of Academy of Marketing Science 25:139–153

    Article  Google Scholar 

  • Woodruff RB, Flint DJ (2006) Marketing’s service-dominant logic and customer value, in Lusch, R. F. and Vargo, S. L. (eds.) The service-dominant logic of marketing: dialog, debate, and directions. Sharpe, New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Veronica Martinez .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Martinez, V., Turner, T. (2011). Designing Competitive Service Models. In: Macintyre, M., Parry, G., Angelis, J. (eds) Service Design and Delivery. Service Science: Research and Innovations in the Service Economy. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-8321-3_5

Download citation

  • DOI: https://doi.org/10.1007/978-1-4419-8321-3_5

  • Published:

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4419-8320-6

  • Online ISBN: 978-1-4419-8321-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics