Rolls-Royce: A Manufacturer at Your Service


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : MKTG208 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Industrial Marketing
Case Length : 21 Pages
Period : 1970-2009
Pub Date : 2009
Teaching Note : Not Available
Organization : Rolls-Royce plc.
Industry : Aerospace
Countries : UK, Global

Abstract:

The case discusses how, over the years, after-sales service has grown to be an important component of the business portfolio of Rolls-Royce plc (Rolls-Royce), a leading manufacturer of aero engines. It begins with the early history of the company and describes its foray into automobiles and aerospace. The case also discusses the company's bankruptcy in the early 1970s and its subsequent turnaround. It describes the various after-sales services offered by the company, and mentions the benefits and disadvantages of giving so much importance to after-sales service, as a source of revenues as well as a differentiator for its products. The case concludes with a brief discussion on the challenges faced by the company and its future outlook.

Issues:

Understand the importance of after-sales service, both as a source of differentiation, and as a steady source of revenue.

Identify the advantages and pitfalls of being heavily dependant on after-sales service to drive sales and earn additional revenues.

Contents:

  Page No.
Introduction 1
Background Note 2
The Bankruptcy And The Turnaround 3
A New Direction 4
The Strategy For The Future - Turn Service Into A Growth Engine 6
The Services 6
After-Sales Service: The Business Opportunity 9
Challenges 10
Outlook 12
Exhibits 13

Keywords:

Rolls-Royce, Service, Rolls-Royce, Civil Aero engines, Power by the hour, Aerospace industry, After-sales service, Airline industry, Differentiation strategy, Product line extension, Diversification

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