Servitization in the Car Industry: A Case Study of the concept Care by Volvo

Abstract

In recent years, product-based companies are adding more services to their products and in contrast to the traditional perspective, products can now be add-ons to services. Hence, servitization has entered the manufacturing industry and more specifically the car industry. The chief purpose of this thesis is to investigate how a car manufacturer can servitize its offering. This has been done by conducting a single case study at Volvo Car Sweden, about the new subscription model Care by Volvo. To answer the Research Questions, a Theoretical Framework about service, servitization and subscription have been used. To answer the Research Questions these theories have been combined with primary data collections in terms of qualitative and quantitative research. Based on the Theoretical Framework and the empirical data, the authors have identified some findings. First, suggestions for how Volvo Car Sweden can improve their communication about Care by Volvo, to increase the awareness is presented. Secondly, the differences between the competitors and Care by Volvo has been identified. Finally, the authors suggest four different services that can be added to increase the customer value of Care by Volvo. All the findings will increase the understanding of how a car manufacturer can servitize its offering.