Publications
Publications
- July 2002 (Revised August 2002)
- HBS Case Collection
SIG Beverages (A)
Abstract
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
Citation
Oliva, Rogelio, and James Quinn. "SIG Beverages (A)." Harvard Business School Case 603-018, July 2002. (Revised August 2002.)