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

Highly dynamic market environment, knowledge creation and technology advancement demands that producers/providers need to be more efficient and effective in meeting existing and future consumer needs and expectations. In this regard, companies strive, as deeply as possible, to diversify a range of proposed products as well as strategies for their commercialisation. Using the case of 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 fifteen geographically spread countries which account for more than 85% of the global revenues of the industry. The analysis of the survey results identified a homogeneous group of so-called Out of Touch consumers characterized by their attitude: they are interested in and have money for, but no-longer purchase music. The authors attempt to ascertain if and how reengaging 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 fifteen different countries. Findings suggest that firms may employ global strategies for supply of products and services, but regional strategies are required to define the appropriate bundles to re-engage Out of Touch consumers.