Editing Service economy (section)

===Financial drivers===
The financial driver is reflected in improved profit margins and stable income, that come with servitization. In the increasing price competition among product offering, companies can use services to recover the lost potential revenue. GE's transportation division encountered a 60% drop in the number of locomotives sold between 1999 and 2002 but did not turn out disastrously because the revenue from services has tripled from $500M to $1.5B from 1996 to 2002.<ref>Sawhney, M. S., Balasubramaniam, S., & Krishnan, V. V. (2004). Creating Growth with Services. MIT Sloan Management Review. https://doi.org/10.1080/13552600410001470973
</ref> According to an AMR Research (1999) report, companies earn over 45% gross profits from the aftermarket services although they represent only 24% of revenues. It also shows that GM earned more profits in 2001 from $9 billion after-sale revenues than it did from $150 billion income from car sales.<ref>Cohen, M. A., & Agrawal, N. (2006). Winning in the Aftermarket. Harvard Business Review, 84, 129–138. https://doi.org/Article
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Also, the servitization levels the seasonality of the product and increases life cycles of the complex products, examples of which one can see in the aircraft industry, whereby companies stop focusing on the pure product delivery but start introducing maintenance and other aftermarket activities.<ref>Ward, Y., & Graves, A. (2007). Through-life management: the provision of total customer solutions in the aerospace industry. International Journal of Services Technology and Management, 8(6), 455. https://doi.org/10.1504/IJSTM.2007.013942</ref>