Things a Service Business Must Get Right Assignment

Things a Service Business Must Get Right - Assignment Example This paper illustrates that the business strategies that are applicable in a commodity market are totally different from those applicable from the service markets, owing to the tangibility of the commodity as opposed to a service. While promoting a product, it is much easier for the customer to inspect and try out the product before making a purchase decision, since the product is tangibly available for inspection. This is different with a service market since the prospective buyer cannot try out a service before he/she purchases it. Thus for a service business to earn good profits, more efforts in strategizing must be applied as opposed to a business dealing in goods. This forms the subject of this Journal Article review, covering a brief summary, critique of the article and offering concluding thoughts. The fundamental reason for choosing this article is the realization that the service industry operates completely different from a commodity market. While some business strategies a re applicable to any form of business whether product or service business, there is some uniqueness in the service industry that calls for applying different strategies. This article is relevant to advance this realization, since it covers four things a service business must get right, in order to survive and succeed. Most of the management tools that have been established over time have specialized in addressing the challenges of the product companies. Although such management tools are of considerable value to managers operating in the service businesses, they fall short of the requirement for effective and efficient management of such businesses to enhance successful growth and profitability. Frei has introduced four main elements that would help see the service business grow towards profitability. These elements, which constitute the new management tool for the service industry, are the design of the offering, employee management, customer management, and the funding mechanism, which collectively forms the service model. To start with, the service offering by any service business should be well designed, tailor-made to meet the desires and the needs of the most attractive customer groups.