Productization of Services as a Growth Strategy for Aircraft MRO Company
Jemsly Hutabarat, Jemsly.hutabarat@gmail.com- B Yuliarto Nugroho, nugrohoyuliarto@gmail.com- Martani Huseini, martani0703 @yahoo.com

Administration Science, University of Indonesia

Abstract

The aviation industry, especially the aircraft maintenance, repair, & overhaul (^MRO^), is very vulnerable and sensitive to external and internal environmental change. Airline companies require an affordable cost with the intention to have a lower annual yield in the timely manner. Nevertheless, the service utilizing the hi-tech and hi-capital assets needs to be excellent. This situation has led the aviation communities, such as suppliers, and aircraft MRO, to amend their operations significantly.
This demand tends to increase and leads to integrated goods and services so that aircraft MRO could respond with an excellent service towards an exceptional airline^s operations and maintenance of the aircraft and components.
The MROs provide a total solution to airlines by integrating services and products, through the productization of services strategy. In contrast, the activity implementation is highly dependent on the ^the way^ how a company runs the strategy. MROs are offering maintenance services bundled with the provision of service with Product. MROs excel in the maintenance provision, particularly when the product has reached a certain cycle (matured age). The MROs can provide a total solution by offering the services which are enriched with ^goods^. This offering strategy is a part of PSS or Product-Service System.
This PSS strategy is a corporate strategy that can be carried out in two ways: concentration and diversification. Integrated product and services through productization of services in aircraft MRO company to become a cutting edge growth strategy in thriving the business change demands.

Keywords: Total care aircraft, Growth Strategy, Productization of Services, Product Services SystemAircraft MRO

Topic: Strategic Management, Entrepreneurship and Contemporary Issues