Internationalization of Product-Service Systems: Global, Regional or National Strategy?

Abstract

Highly dynamic market environment, knowledge creation, and technology advancement demands that producers/providers be more efficient and effective in meeting existing and future consumer needs and expectations. In this regard, companies strive as far as possible to diversify a range of proposed products as well as commercialization strategies. Using the case of the music industry, this paper explores the validity of national, regional or global strategies in the provision of a product service system. The authors surveyed over 70,000 respondents from 15 geographically spread countries which account for more than 85% of the industry’s global revenues. The analysis of the survey results identified a homogeneous group of so-called ‘Out of Touch’ consumers characterized by a shared attitude: they are interested in and have the money to purchase music, but no longer do so. The authors attempt to ascertain if and how re-engaging the group in music purchase would achieve a significant sales increase. The analysis explores how potential consumers might respond to, or are able to be influenced by, value offerings in 15 different countries. The findings suggest that firms may employ global strategies for supplying products and services, but regional strategies are required to define the appropriate bundles to re-engage ‘Out of Touch’ consumers.