Air Compressors or Compressed Air: Harvesting the Benefits

Review of sustainable service-based business models in the Chinese truck sector

“…Finally, we added one book , four book chapters (Nieuwenhuis & Wells, 2003;Radgen, 2014;Visintin, 2014;Gaiardelli et al, 2014b) as well as four journal articles (Firnkorn & Müller, 2012;Wells & Orsato, 2005;Meier et al, 2010;Sundin & Bras, 2005) which were traced back from previous literature reviews but our search process failed to extract them. At the end of this process, our sample contained 22 studies.…”

“…Compared to the automotive sector, the servitization of the capital goods sector is more advanced and five use-oriented or result-oriented business models belong to our sample as described in Table 8 and Table 9 Meier et al, 2010;Sundin & Bras, 2005;Visintin, 2014;Radgen, 2014). Meier et al (2010) emphasize on the internal resources and capabilities required to offer "Industrial Product-Service Systems'', IPS 2 but there is limited information on the key partners and distribution channels involved in this business model.…”

“…The authors insist on operating this business model with a closed-loop supply chain in order to make the business model more sustainable. Contracting solutions offered by air compressors manufacturers are a typical example of a value proposition based on resultoriented services (Radgen, 2014). Manufacturers provide compressed air instead of selling their products.…”

“…Existing PSS business models adopted by industrial or office equipment manufacturers are partially described in the literature but their analysis can still help to learn how to develop a sustainable result-oriented PSS business model in the truck sector. In the five articles related to the capital goods sector Meier et al, 2010;Sundin & Bras, 2005;Visintin, 2014;Radgen, 2014), authors emphasize the need to carefully understand customer expectations in order to design an attractive value proposition. The portfolio of result-oriented services integrated in the PSS should provide solutions which evolve over time to fulfil the variety of business customers' needs (Meier et al, 2010;Visintin, 2014).…”

“…Yet, a successful business model in a given industry and in a given market cannot be directly applied to the Chinese truck sector because of the specific geographic and sectorial conditions , such as the high price sensitivity of Chinese customers or the existence of informal market for spare parts (KPMG, 2011;Zhu et al, 2015). Truck manufacturers can successfully earn profits from servitization if they align their servitization strategy to the Chinese environment and if they carefully manage added risks and costs associated with the servitization transition (Visintin, 2014;Radgen, 2014).…”