Differences between service- and product selling companies in defining their global and local strategies

The world-wide present business-to-business product- and service selling companies define their global and local strategies in a different way. The main aim of this research is to investigate these differences and analyze them in terms of their origins and influence on these companies. Primary research question: How service- and product selling companies differ in defining their global and local strategies? Supporting research question: How significant are these differences in light of the performances of the companies? As a research method a single-case study with holistic design has been chosen. Both primary and secondary data have been used in analysis. The authors build, present and test two strategy definition-based models: one for product- and one for service selling company. For verification, empirical data from two corresponding case companies have been used. Conclusion: there are clear differences between product- and service selling companies when it comes to strategy definitions. Service selling companies tend to build a deep and long-lasting relationship between the company and customer which is a base of driving this type of business. For these types of companies the customer itself is in center. In case of product-selling companies more focus is being put on channel optimization, focusing on core businesses, making concessions and terminating bad customer accounts, but the main core of strategy is based on quality and innovation of the end product