Managing Services ‎Business for ‎Markets: a ‎Case ‎Study of Marel

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Managing services business for markets: A Case study of Marel

Karlstad Business School
Handelshögskolan vid Karlstads Universitet

Course code: FEAD51 Course name: Industrial Marketing Title: Managing services for business markets: A ‎ ase study of Marel C Date of Submission: 2013-03-04 Family name Shurrab El Bouassami

Given name
Hafez Mohammed

Name of the teacher: Maria Åkesson Name of the administrator: Frania Johansson

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. INTRODUCTION ..........................................................................................................- 1 BACKGROUND ............................................................................................................- 1 THEORY ........................................................................................................................- 1 ANALYSIS .....................................................................................................................- 2 CONCLUSIONS.............................................................................................................- 4 REFERENCES ...............................................................................................................- 5 -

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1. INTRODUCTION
Nowadays, customers of capital goods (B2B) require more and more value-adding activities from their suppliers. That prompts industrials, in order to retain their final customers’ loyalty, focus on offering a range of value-added services centered on or around their core products. The main purpose of doing so is to improve the overall performance of the customer’s value systems. Such services create new source of revenue for suppliers, and therefore affect their profits positively in the long term. In most cases, service products are intangible even though they could have a physical appearance (Tidd & Hull, 2002). In B2B markets, manufacturers always offer at least minimum services to convince their customers to buy their products. Recently, there are bundles of services offered by companies result in better value-adding system. That may include maintenance, customer training, consultancy, or even tailor-made solutions according to the customer needs. In this report, we highlight the growth of service products in a manufacturing company, which is Marel in our case. The analysis is dedicated to answer questions like why manufacturing companies may incorporate service products, and what makes it service- or good-oriented company.

2. BACKGROUND
‎ arel is the leading global provider of advanced equipment, systems and services M

to the fish, meat and poultry industries. Marel is a multinational company, with more than 4000 employees worldwide, where their business units are mainly located in Netherlands, Denmark, United States, Iceland, Slovakia, and Singapore. The company operates a network of sales and services units all over the world (Marel 2013).

3. THEORY
O ‎ ne‎ way‎ to‎ enhance‎ manufacturing‎ companies’‎ growth‎ and‎ revenue‎ is‎ by‎ adding‎ services to the overall business as important element for their future success. There are four factors account for the growth of business services including e-business, where internet help in creating new business models based on range of e-commerce products and services. The second factor is the outsourcing, where companies of all types moves toward outsourcing functions and services that are not their core expertise. Innovations stand as a third factor, since new technologies support creating new services that did not

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exist over a decade ago. The fourth factor is accounted for manufacturing growth that arose together with demand of collateral services (Hutt & Speh, 2004). In B2B markets, services can be classified into two different categories. The first category is products supported by services. In this case, services that accompany the physical product are always important as the technical solutions offered by the...
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