The transportation industry is a rapidly changing business. As a result of the increased demand for transportation and the tougher demands on transportation companies’ performance, it is important that they have good and reliable processes that are able to live up to those demands in a highly competitive market. Increased performance is important for transportation companies in order to create value for its customers and steps that can help them to achieve this can be seen as valuable. In Sweden, vehicle manufacturers offer extended services in order to respond to the changes on the transportation market. However, there is a knowledge gap about the experiences of using a product together with extended services that has a more service dominant logic compared to buying and using only the product. This research is conducted as a multiple-case study with five companies within the freight transportation industry to investigate their experiences of using extended services regarding risk and value concepts. To be able to conduct this research, literature and empirical study has been conducted through the collection of secondary- and primary data such as face-to- face interviews. The result of this study shows that there are several determining factors, which the case companies consider when determining how to resolve the issues of extended services such as financial aspects, location of workshop, flexibility, size of transporter, and control. Fur- thermore was advantages of using extended services offered by vehicle manufacturers found that related to financial advantages, increased customer service levels, assurance that best service will be provided, and increased up-time. In addition to that it was found that these services could help transportation companies to reduce some risks related to the financial- and goods/physical risk categories. In contrast were advantages of not using extended services offered by vehicle manufacturers found such as financial benefits, possibilities to cooperate, flexibility, increased up-time as a result of location, and control. The loss of control was a risk found that could be decreased if not using vehicle manufacturers extended services.

Research shows that climate changes we face today is a consequence of the increasing amounts of greenhouse gases that circulate in our atmosphere due to increased human industrial activity. Many firms and industries are therefore increasingly implementing environmental management strategies to reduce greenhouse gas emissions towards a more sustainable environment. These environmental management efforts can be broadly classified under two umbrellas which are sustainable production and sustainable consumption and these two parts need to work together in order to contribute effectively towards a more sustainable environment. The environmental management literature however reveals a gap between sustainable production and sustainable use of vehicles in the automotive industry showing that while the major global environmental impact - greenhouse gas emissions - occurs when vehicles are put to use, the environmental management efforts in the industry are skewed to the production of vehicles.An emerging trend to breach this gap is that vehicle manufacturers are providing extending services to help vehicle users minimize their greenhouse gas emissions. This study analyses the extended service packages of the global truck manufacturer, Scania, against the environmental objectives and initiatives of five road transport companies in Sweden. An exploratory case study approach was used from the perspective of the road freight transport companies to find out if extended services present suitable opportunities to extend environmental management from manufacturers to users in the road freight transport industry. The study found that the extended services provide solutions that help road freighttransport companies to achieve lower fuel consumption and lower emissions from theirvehicles. Road freight transport companies traditionally invest in environmental initiatives to gain marketing advantages but the extended services present a rare opportunity to the companies to compete on profit margins by investing in the extended services. / Market Making of a High-value Business Model in Low Cost Markets: Value Co-Creation in Swedish Industry, CeLS, Project manager: Leif-Magnus Jensen, leif-magnus.jensen@jibs.hj.se, +46 36 10 1881.