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Profiting From Services and Solutions by Stephen W. Brown, Valarie A. Zeithaml

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Chapter 2

The Service Infusion Continuum

General Electric (GE) has always had a huge service business to support its line of industrial products. The corporation holds multiyear service contracts worth over $150 billion and generates over $50 billion in services revenues annually. About three-quarters of GE’s industrial earnings come from services tied to maintaining and enhancing GE products.1

In recent years, GE has expanded beyond entitlements (e.g., warranties and repairs) that most companies offer to support a customer’s use of their products. We have studied the academic and business literature and conducted our own in depth research on this ever-growing set of companies that are, like GE, adding more complex services and solutions to their ...

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