In-class discussion questions for Jan 21

• According to the Otis case, which business is more profitable? Elevator manufacturing or service? Why?
• In the Otis case, “The service market attracted many participants because of its steady demand, low barriers of entry, and high profitability.” (p. 3) Doesn’t it mean that the service market is not profitable for Otis?
• How often do you change your doctor? Why?
• Will Otis customers (building owners or managers) change an elevator service company often? Why or why not?
• Can you think of an example of bundle around us? Why do firms sell a bundle?
• Why would bundling up an elevator (product) and maintenance services together (i.e. total solutions) be more profitable than selling an elevator and services individually?
• How were things going before OTISLINE? How now are things going after OTISLINE?
• What are the improvements in customer service from OTISLINE?

We will discuss these questions in-class on Wed, Jan 21. Do not post comments on this.