Short answer

Design product and service strategies that are integrated and adaptable to the specific needs and regulatory environments of emerging markets, prioritizing local collaboration.

Field: Innovation & Markets
Source: American Journal of Business and Management (2013)
Method: Exploratory single-case study
Sample: 28 participants
Evidence: Moderate effect

Integrating services (servitization) with global market expansion (globalization) offers a strategic advantage for established IT manufacturers facing domestic market saturation and intense competition. This innovation & markets research insight is drawn from a 2013 study published in American Journal of Business and Management. Using Exploratory single-case study with 28 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design product and service strategies that are integrated and adaptable to the specific needs and regulatory environments of emerging markets, prioritizing local collaboration.

Study

Innovation & MarketsHigh ImpactModerate effect

Servitization and Globalization: A Strategic Pathway for Japanese IT Manufacturers in Emerging Markets

American Journal of Business and Management · 2013

Key Findings

01Emerging markets, like Bangladesh, seek IT suppliers offering 'total solutions' and 'know-how'.
02Key challenges for market entry include long establishment processes, managing multi-vendor products, and building brand awareness.
03A conceptual model suggests aligning capabilities with local partners to create mutual value.

Application

Design takeaway

Design product and service strategies that are integrated and adaptable to the specific needs and regulatory environments of emerging markets, prioritizing local collaboration.

How to apply

When considering expansion into new, less developed markets, analyze opportunities to bundle services with core products and identify potential local partners for collaboration.

Project actions

01When researching new markets, consider how services can add value beyond the physical product.
02Investigate potential local partners who can help overcome market entry challenges.

Method & Evidence

AimTo explore the opportunities and challenges for Japanese IT manufacturers entering emerging markets, specifically Bangladesh, by adopting a combined servitization and globalization strategy.

MethodExploratory single-case study

ProcedureConducted semi-structured interviews with stakeholders in a case company (Fujitsu) and the IT industry in Bangladesh, supplemented by archival data analysis.

Sample28 participants

ContextJapanese IT manufacturing industry targeting emerging markets, with a specific focus on Bangladesh.

Variables

IV["Servitization strategy","Globalization strategy"]

DV["Market entry success","Value creation","Opportunity and challenge realization"]

CV["Industry (IT)","Originating country (Japan)","Target market (Emerging, Bangladesh)"]

Strengths & Limitations

Strengths

+Provides a conceptual model for strategic business development.
+Offers practical insights into market entry challenges and opportunities.

Limitations

The findings are specific to the IT industry and the context of Bangladesh in 2013. The effectiveness of this strategy may vary across industries and regions.

Reliability & validity

The use of semi-structured interviews and archival data provides a degree of triangulation. However, the single-case nature limits external validity, and findings are context-specific to the time of the study.

Think critically

How might the challenges of implementing servitization differ in markets with varying levels of technological infrastructure and consumer digital literacy?

Design Principles

"Value creation through integrated product-service offerings and strategic market alliances."

This approach allows companies to move beyond traditional product sales by offering comprehensive solutions and expertise, thereby creating new value streams and differentiating themselves in competitive emerging markets. It addresses the need for higher value-added offerings sought by developing economies.

What This Means for Your Design

Companies can sell more than just products by adding services and expanding globally, especially in new markets that want complete solutions.

How to use in your project

1.Use this research to justify a strategy that combines product development with service design for a target market.
2.Cite this study when discussing market entry strategies or the importance of partnerships.

Add to My Project

Quick Cite

Paragraph starter

This research highlights the strategic advantage of integrating 'servitization' with 'globalization' for manufacturers, particularly in emerging markets. By offering 'total solutions' and 'know-how' through service-product bundles and forming strategic alliances with local partners, companies can overcome market entry challenges and create mutual value, as demonstrated by the case of Japanese IT manufacturers exploring opportunities in Bangladesh.

Source

American Journal of Business and Management

“Servitization” Coupled With “Globalization”: A Solution Oriented Business Strategy for Japanese IT Manufacturer towards Emerging Market Entrants

journal · 2013

View source

Questions About This Research

What does the research say about servitization and globalization: a strategic pathway for japanese it manufacturers in emerging markets?: Design product and service strategies that are integrated and adaptable to the specific needs and regulatory environments of emerging markets, prioritizing local collaboration. Evidence: American Journal of Business and Management (2013).
Why does "Servitization and Globalization: A Strategic Pathway for Japanese IT Manufacturers in Emerging Markets" matter for design?: This approach allows companies to move beyond traditional product sales by offering comprehensive solutions and expertise, thereby creating new value streams and differentiating themselves in competitive emerging markets. It addresses the need for higher value-added offerings sought by developing economies.
How can designers apply this research?: Design product and service strategies that are integrated and adaptable to the specific needs and regulatory environments of emerging markets, prioritizing local collaboration.
What were the main findings?: Emerging markets, like Bangladesh, seek IT suppliers offering 'total solutions' and 'know-how'.. Key challenges for market entry include long establishment processes, managing multi-vendor products, and building brand awareness.. A conceptual model suggests aligning capabilities with local partners to create mutual value.
What research method was used?: Exploratory single-case study with 28 participants.
How strong is the evidence?: Evidence strength is rated Moderate effect, based on a 2013 journal from American Journal of Business and Management.
What should I do differently in my next project?: When considering expansion into new, less developed markets, analyze opportunities to bundle services with core products and identify potential local partners for collaboration.
What are the limitations?: The study is based on a single case and a specific emerging market, limiting generalizability. The findings reflect the market conditions of 2013.