A Strategic Orientation Typology For The Analysis Of Servitization Intensity

Goods and services are both areas of operations, this means that they will change the state of any input into output. In order to achieve this they will need to have a transformation process according to the type of service or goods they have to offer this is all part of satisfying customer needs.

Service innovation. Customers are open to increasingly outsourcing supply chain and logistics activities to third parties. Flexible and innovative solutions are highly important to gain and retain profitable market share.

3. (TCO H) Marketers recognize that the marketing of services is different than the marketing of a product because of the different characteristics that distinguish them from physical products. How do marketers communicate the value of services to consumers? How do they make these intangible services appear tangible to the consumer? What are some marketing strategies that might be employed with services to

The purpose of this paper is to show how to evaluate the impact on innovation through strategies, processes, products and services through three different organizations. The organizations evaluated are Wal-Mart, Barnes & Noble’s and the University of Phoenix. As a manager of the in original and companies, it is important that several companies find a system to pursue accordingly and maintain the focus on remaining competitive. Consumers of all three businesses will profit from innovated options such as keeping the cost of products and services at a lower cost and by offering better options for a price which will enhance savings.

Several key points are presented in the article for how companies can be successful. The first, is that companies must be innovative and be willing “to change their core products or business models” (Bertolini et al., 2015, p. 90) to keep up with the change in the marketplace. This may require that they rebrand their product, or change their business

The supply chain process for Riordan is critical for its success. This process essentially entails the transformation of materials into semi-finished and finished products, the flow of material from suppliers, and the distribution of products to customers (Chase, Jacobs, & Aquilano, 2005). In today’s marketplace, companies like Riordan are competitive and seeking new and innovative ways to transform their supply chain and make it into a competitive or strategic advantage. Companies are continuously seeking supply chain services which will enhance its overall efficiency, which in turn, will drive in more revenue while gaining a competitive advantage (Chase et al., 2005).

This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .

Tangible goods, or rather manufactured goods, have been the dominant medium of exchange for centuries. However, recent decades have proved that it is no longer the case as there has been a prevalence of being service oriented (Vargo and Lusch, 2004:1-2). Services, as defined by Vargo and Lusch (2004), are  “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (p.2).” Utilizing services gives businesses an edge, a competitive advantage, particularly in an evolving competitive market, something which Metalfrio is definitely part of (Vargo and Lusch, 2004:9).  Those businesses that learn to adapt tend to do well. In addition, Vargo and Lusch (2004) write this shift to services is also a shift from producer perspective to a customer perspective (p.2). Thus, it leads to more of a collaborative effort where co-creation leads to adding value to the service rather than a product having value (Vargo and Lusch, 2004:6). Also, customers rather develop relationships with those that can provide a range of related services over an extended period of time, thus allowing businesses retain their clients for the long term (Vargo and Lusch, 2004:13). Overall, service oriented marketing is a direction that businesses should be headed towards to ensure that they can remain relevant and competitive in the

In mature markets such as the luxury car industry, different companies own the market shares already. These companies sell similar items at comparable prices, so the key to success is to differentiate their item by adding a service that customers feel is valuable. I found the Service Added Based Differentiation Simulation very difficult. My results were less than optimal every time I attempted something different. My first attempt at the differentiation was to add the GPS System in all of the Camyo vehicles. My decision was poor because it appeared not to have added a higher value perception within my target market. The customers were able to assign a value to the GPS system, therefore it was not the best option. Although my actual unit sales were not optimal on my initial attempt, the profitability of the car was high since I raised the price. My second decision was made based upon the recommendation to add more than one option. Therefore I added the GPS system and the weekly car wash. The customers viewed the

Service firms are increasingly using customer service to develop sustainable competitive advantage – through value generation as well as differentiation. This

The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.

Differentiation requires a constantly changing product line and is more successful when the company is able to offer a portfolio of products that complement each other, which enriches the experience for customers and satisfies a variety of consumer needs. And when differentiated products truly satisfy customers’ unique needs, the company is able to charge premium prices. For customers to be willing to pay a premium price, however, Ford's products must truly be perceived as unique in some way. The ability to sell goods or services at prices that substantially exceed the cost of creating the differentiated features will allow Ford to outperform its rivals and earn above-average returns.

The lean principles can be applied to service operations, as service operations are “organized systems of production processes” with the same potential for improvement through implementation of lean precepts as manufacturing operations (Benson, 1986 in Duclos et al., 1995). Manufacturing employ processes that add value to the inputs used in creating final products, which is in a way similar to services (Canel et al., 2000). Silvestro et al. (1993) classified service processes into three major headings of professional, service shop and mass. These three majors headings are further classified into six different dimensions of equipment/people focus as the main element of the service delivery is provided by equipment or people; customer contact time per transaction; the

A product can be a product or a service. If your product provides sufficient value to customers, they will buy - no matter how good or bad the economic situation is, if they perceive value they will pay the price (Wood, 2010).

The major differences between goods and services in operations management are their goods, inventory, customers, labor and location. One major difference in the tangibility of their output. For example, a service firm would entail consultancy, training or maintenance, this is an intangible product. These services are not tangible object, but still provide a “product” for the customer. A good would be a tangible for the consumer. A company manufactures a certain product and the consumer is able to physically receive it. For example, A manufacturer such as Coke, Nestle, Honda and BMW. Another difference between a service and goods is their inventory. Service forms do not hold inventory, they provide a service when their customers ' need it. Manufacturers produce goods which creates an inventory. Inventory levels are created through supply and demand. A lot of companies only have a certain level of inventory in order to utilize their “space”. In addition a major difference between goods and services is their customer relationship. There is a high customer contact in the service industry. The service industry caters to their clients; meaning they adjust their service to the needs of the customer. For example, a consulting firm may only need to do four hours of work with a certain customer and twelve hours with another. In manufacturing goods there is low customer contact. Manufactures can produce their customers goods without having them submit an order, because they can