Case summary:
Company D is a plumbing, heating and air-conditioning company. This company has a simple but powerful strategy. The main goal of the company is their customer satisfaction. The firm offers 24 hours service for 7 days a week with no extra charges.
Company D guarantees price for their work and offers guarantee for all parts for a year. The company does not charge for travel. The company highly concentrates on customer satisfaction rather than wealth creation.
The company does selective hiring, training and education, performance and compensation to concentrate on customer satisfaction. The company charges premium price but has high customer response due to the promised value. The revenue has increased from $200,000 to $3.3 million.
To determine: The product of company D, its tangible parts and the service components.
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Principles Of Operations Management
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