SIG Beverages (A)

  • Reference: HBS-603S24

  • Year: 2002

  • Geographic Setting: Italy;Switzerland

  • Publication Date: Aug 21, 12

  • Fecha de edición: Aug 30, 2002

  • Source: HBSP (USA)

  • Type of Document: Case

  • Company: 630 million Euros revenues

  • Industry Setting: Beverages;Packaging, cartons & containers;Manufacturing

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Description

SIG Beverages, a leading supplier of bottling and packaging systems for the beverage industry, has recognized an opportunity in providing services for its product end users. Management's challenge is to develop a service portfolio to address end users' needs, while balancing the competing initiatives to develop internal service capabilities. In the midst of a series of projects to improve spare parts and repair services, a customer requests a fixed-rate maintenance contract beyond SIG's current capabilities. The case details, grounded in the operations of an Italian business unit, lead to a discussion of installed base economics, the advantages that manufacturers have in providing product-related services, and the cultural challenge to instill a service mentality within a product-centered organization.

Keywords

Operations management Organizational change Production Service management