Service Strategy
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Service Strategy



Service Strategy

Service Strategy



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    Service Strategy Service Strategy Presentation Transcript

    • Service Strategy
    • Learning Objectives
      • Identify strategic opportunities available in the design of the service concept.
      • Understand the competitive environment of services.
      • Explore the dimensions of service competition.
      • Identify methods of winning customers in the marketplace
      • Discuss the limits in the use of information
      • Discuss the competitive role of information in services.
    • The Strategic Service Concept
      • Structural: Delivery system (front & back office) Facility design (aesthetics, layout) Location (competition, site characteristics) Capacity planning (number of servers )
      • Managerial Service encounter (culture, empowerment) Quality (measurement, guarantee) Managing capacity and demand (queues) Information (data collection, resource)
    • Competitive Environment of Services
      • Relatively Low Overall Entry Barriers
      • Economies of Scale Limited
      • High Transportation Costs
      • Erratic Sales Fluctuations
      • No Power Dealing with Buyers or Suppliers
      • Product Substitutions for Service
      • High Customer Loyalty
      • Exit Barriers
    • Competitive Service Strategies (Overall Cost Leadership)
      • Seeking Out Low-cost Customers
      • Standardizing a Custom Service
      • Reducing the Personal Element in Service Delivery
      • Reducing Network Costs
      • Taking Service Operations Off-line
    • Competitive Service Strategies (Differentiation)
      • Making the Intangible Tangible
      • Customizing the Standard Product
      • Reducing Perceived Risk
      • Giving Attention to Personnel Training
      • Controlling Quality Note : Differentiation in service means being unique in brand image, technology use, features, or reputation for customer service.
    • Competitive Service Strategies (Focus)
      • Buyer Group: (e.g. USAA insurance and military officers)
      • Service Offered: (e.g. Shouldice Hospital and hernia patients)
      • Geographic Region: (e.g. Austin Cable Vision and TV watchers)
    • Customer Criteria for Selecting a Service Provider
      • Availability (24 hour ATM)
      • Convenience (Site location)
      • Dependability (On-time performance)
      • Personalization (Know customer’s name)
      • Price (Quality surrogate)
      • Quality (Perceptions important)
      • Reputation (Word-of-mouth)
      • Safety (Doing things to people)
      • Speed (Avoid excessive waiting)
    • Service Purchase Decision
      • Service Qualifier : To be taken seriously a certain level must be attained on the competitive dimension, as defined by other market players. Examples are cleanliness for a fast food restaurant or safe aircraft for an airline.
      • Service Winner : The competitive dimension used to make the final choice among competitors. Example is price.
    • Service Purchase Decision (cont.)
      • Service Loser : Failure to deliver at or above the expected level for a competitive dimension. Examples are failure to repair auto (dependability), rude treatment (personalization) or late delivery of package (speed).
    • Competitive Role of Information in Services
      • Strategic Focus Competitive Use of Information
      • On-line Off-line
      • (Real time) (Analysis)
      • Creation of barriers to entry: Data base asset:
      • External Reservation system Selling information
      • (Customer) Frequent user club Development of services
      • Switching costs Micro-marketing
      • Revenue generation: Productivity enhancement:
      • Internal Yield management Inventory status
      • (Operations) Point of sale Data envelopment
      • Expert systems analysis (DEA)
    • Limits in the Use of Information
      • Anti-competitive (Barrier to entry)
      • Fairness (Yield management)
      • Invasion of Privacy (Micro-marketing)
      • Data Security (Medical records)
      • Reliability (Credit report)
    • Discussion Topics
      • What are the characteristics of service that will be affected by the emerging electronic and communications technology?
      • When does information collected through service membership become an invasion of privacy?
      • Discuss the concept of service ‘winners’ and service ‘losers’ for a service you are familiar with.
      • What are the implications of the growing use of personal computers for the customization of services and elimination of human interactions?
    • America West Airlines Generic Competitive Strategy
      • Target Strategic Advantage
      • Low cost Uniqueness
      • Entire Overall cost Differentiation
      • Market leadership
      • Market Focus
      • Segment
    • America West Airlines Competitive Features
      • Service Qualifiers:
      • Service Winners:
      • Service Losers:
    • America West Airlines Strategic Service Concept
      • Delivery System:
      • Location:
      • Facility Design:
      • Capacity Planning
    • America West Airlines Strategic Service Concept (cont.)
      • Service Encounter:
      • Quality:
      • Managing Capacity and Demand:
      • Information:
    • America West Airlines Positioning
      • Full Service
      • Inconvenient Convenient
      • No Amenities