Question: If sustainability requires consumers to reduce consumption, how can a company that makes money selling products address this concern while maintaining profits? The answer, according to a handful of analysts and companies, is “servicizing.”
Rita Gunther McGrath, associate professor at the Columbia Business School and co-author of The Entrepreneurial Mindset and MarketBusters: 40 Strategic Moves that Drive Exceptional Business Growth calls it “finding a new unit of business” and says it?s something a lot of companies are looking to do.
“The most successful companies capture the absolute greatest amount of customer spending, or create far lower costs for themselves by altering what they sell,” she says.
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