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Abstract

Vanderlande Industries (VI) is a Dutch multinational firm specializing in the manufacturing of goods handling systems. This case study deals with VI's primary strategic route with regard to turning services into its core business. VI's business proposition has evolved from manufacturing into product innovation and project management, and again into services during the first half of the 2000s. Services have grown rapidly since 2007 and have became the business segment with the highest growth rate in the company. In late 2013, VI expressed its ambition to commercialize services on a larger scale, with the goal of becoming a full-service provider. To achieve this, there were still two thresholds for the firm to cross: 1) VI still did not know enough about its customers to make itself indispensible to the value creation process, and 2) despite VI management's ambition, not everyone in the organization believed they could pull it off. How could this seasoned manufacturing project firm prepare itself so it would not miss out on the headwind toward further growth of its service business without compromising its project business?
Location:
Industry:
Other setting(s):
2013

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Abstract

Vanderlande Industries (VI) is a Dutch multinational firm specializing in the manufacturing of goods handling systems. This case study deals with VI's primary strategic route with regard to turning services into its core business. VI's business proposition has evolved from manufacturing into product innovation and project management, and again into services during the first half of the 2000s. Services have grown rapidly since 2007 and have became the business segment with the highest growth rate in the company. In late 2013, VI expressed its ambition to commercialize services on a larger scale, with the goal of becoming a full-service provider. To achieve this, there were still two thresholds for the firm to cross: 1) VI still did not know enough about its customers to make itself indispensible to the value creation process, and 2) despite VI management's ambition, not everyone in the organization believed they could pull it off. How could this seasoned manufacturing project firm prepare itself so it would not miss out on the headwind toward further growth of its service business without compromising its project business?

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Location:
Industry:
Other setting(s):
2013

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