The Trend of Servitization of Manufacturing in Developed Countries: A Perspective of Comparative Advantage Theory

• Main Authors: YUNUS YIGIT EZGI, 艾由那
• Other Authors: LUO, LIEH-MING
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/97977644843830509991

碩士 === 輔仁大學 === 國際創業與經營管理學程碩士在職專班 === 105 === The increase in connectedness in the global markets and industries has significantly increased with the globalization. This also had some implications on the traditional business models. The traditional manufacturing industry has been moving to developing countries due to low costs and decreased transportation costs, leaving businesses in developed countries with unemployment, low revenue and high costs of production thus loss of competition. This study, focuses on Comparative Advantage theory, how it is becoming more applicable to our real complex world, and reflects the outcome of the Comparative Advantage theory to the manufacturing sector. It takes servitized manufacturing company’s product as a different product than the unservitized traditional manufacturing company’s product, and compares the results of producing them in a developed and developing country. It turns out that in the long-run, if Comparative Advantage applies to these companies and products, only the developing countries can continue with traditional manufacturing processes, and in developed countries, only businesses with innovative serviceproduct business models can survive.