Creating isolating mechanisms through digital servitization: The case of Covirán

Abstract

Digital servitization allows companies to establish specific entry barriers and create isolating mechanisms to maintain their products’ competitive advantage. Rapid linking of technologies with products has introduced new mechanisms to deliver services that complement product offerings. This business environment has significantly affected food companies in the retail sector, where companies have begun to implement and rely on digital solutions to support business operations to fulfill changing market conditions. The study demonstrates how the Covirán cooperative is improving service provision through digital capabilities to generate isolating mechanisms that enable the company to achieve a superior competitive position.