Critical Analysis of ‘Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry’ by Suarez Et Al. (2013)

A critique and review of the study by Suarez et al. (2013). The paper examines product-focused firms that expand their offerings of services with the goal of increasing profits. Data sets regarding revenue and cost channels are generated and examined, derived from public records of software product firms. An implication is made that the inflection point where services offerings become profitable for product firms can provide additional opportunities within, not just mature markets, but companies with growth goals. Surarez et al (2013) takes a radical humanist outlook on the topic, which is in line with the theories described by Burrell and Morgan (1979). It is indicated that consistent qualitative support in addition to the consistent data set provided would substantiate the authors’ arguments further.