Business services are various tasks and activities that assist a company in maintaining business despite not delivering any tangible product. An example of a business service is information technology, which assists numerous other business services like procurement, finance and shipping. India is currently giving a tough competition to the other countries in terms of offering Business services.
Many managers are accustomed to thinking about businesses in terms of their products. As a result, they use a product-oriented language when describing what they do, and that constrains their approach to strategic management. In a service business, however, it’s often not possible to create a product that meets all the needs and desires of potential customers. Instead, managers must think about the experiences that customers want to have. They must focus on the elements that make a brand distinctive and build customer loyalty.
Unlike physical goods, which can be stored and sold later, business services cannot be produced in advance. Production and consumption of the service take place simultaneously, and demand and supply fluctuate constantly. As a result, a service firm has to be flexible and quick to adapt to changing conditions.
Although a restaurant offers a tangible good (the food), it also provides services in the form of ambience, setting and clearing the table and the serving process. The same is true for other services, such as computer repair, legal work and motion picture theaters. Most modern business theorists see a continuum between pure service at one end and pure commodity goods at the other. The majority of companies fall somewhere in the middle of this continuum.
Successful service companies get four things right. They have a clear understanding of the value they provide, they deliver their service consistently and effectively and they price their services fairly. They also have a process for keeping their employees trained and productive, and they are constantly working to improve their services.
For example, a customer who dithers at a fast-food counter affects the experience of everyone in line behind him. This makes it important for a business to have a system in place to ensure that employees are trained to handle the most common service requests.
In addition to employee training, a business should also have a process for improving the quality of its services and for measuring its performance. For example, a company that measures the number of customer complaints can use this data to analyze its problem areas and develop a plan for improvement.
In addition to internal performance management, a business should seek out external partners to help it improve its service offerings. These partnerships can include outsourcing providers, technology or manufacturing partners and suppliers of ancillary services such as transportation and logistics. Choosing the right partners can significantly enhance a business’s ability to deliver excellent service and drive growth. For instance, a company that hires a specialized freight carrier to transport heavy equipment and materials can save money on in-house fleet maintenance.