1 / 31

Service Strategy

Describe how a service has addressed each element in the strategic service concept. ... Use the service design elements for a service of your choice to ...

ivanbritt
Télécharger la présentation

Service Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    Slide 1:Service Strategy

    Slide 2:Learning Objectives

    Formulate a strategic service vision. Describe how a service has addressed each element in the strategic service concept. Discuss the competitive environment of services. Describe how a service competes using the three generic service strategies. Discuss the service purchase decision. Discuss the competitive role of information Explain the role of the virtual value chain in service innovation. Discuss the limits in the use of information

    Slide 3:Strategic Service Vision Target Market Segments

    What are common characteristics of important market segments? What dimensions can be used to segment the market, demographic, psychographic? How important are various segments? What needs does each have? How well are these needs being served, in what manner, by whom?

    Slide 4:Strategic Service Vision Service Concepts

    What are important elements of the service to be provided, stated in terms of results produced for customers? How are these elements supposed to be perceived by the target market segment, by the market in general, by employees, by others? How do customers perceive the service concept? What efforts does this suggest in terms of the manner in which the service is designed, delivered, marketed?

    Slide 5:Strategic Service Vision Operating Strategy

    What are important elements of the strategy: operations, financing, marketing, organization, human resources, control? On which will the most effort be concentrated? Where will investments be made? How will quality and cost be controlled: measures, incentives, rewards? What results will be expected versus competition in terms of, quality of service, cost profile, productivity, morale/loyalty of servers?

    Slide 6:Strategic Service Vision Service Delivery System

    What are important features of the service delivery system including: role of people, technology, equipment, layout, procedures? What capacity does it provide, normally, at peak levels? To what extent does it, help insure quality standards, differentiate the service from competition, provide barriers to entry by competitors?

    Slide 7:Service Design Elements

    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)

    Slide 8: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

    Slide 9:Competitive Service Strategies (Overall Cost Leadership)

    Seeking Out Low-cost Customers Standardizing a Custom Service Reducing the Personal Element in Service Delivery (promote self-service) Reducing Network Costs (hub and spoke) Taking Service Operations Off-line

    Slide 10:Competitive Service Strategies (Differentiation)

    Making the Intangible Tangible (memorable) 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.

    Slide 11: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)

    Slide 12: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 (Customer well-being) Speed (Avoid excessive waiting)

    Slide 13: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.

    Slide 14: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).

    Slide 15: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)

    Slide 16:The Virtual Value Chain

    Marketplace vs Marketspace Creating New Markets Using Information (Gather, Organize, Select, Synthesize, and Distribute) Three Stage Evolution • 1st Stage (Visibility): See physical operations more effectively with information – Ex. USAA “paperless operation” • 2nd Stage (Mirroring Capability): Substitute virtual activities for physical – Ex. USAA “automate underwriting” • 3rd Stage (New Customer Relationships): Draw on information to deliver value to customer in new ways – Ex. USAA “event oriented service”

    Slide 17: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)

    Slide 18:America West Airlines Generic Competitive Strategy

    Target Strategic Advantage Low cost Uniqueness Entire Overall cost Differentiation Market leadership Market Focus Segment

    Slide 19:America West Airlines Competitive Features

    Service Qualifiers: Service Winners: Service Losers:

    Slide 20:America West Airlines Strategic Service Concept

    Delivery System: Location: Facility Design: Capacity Planning

    Slide 21:America West Airlines Strategic Service Concept (cont.)

    Service Encounter: Quality: Managing Capacity and Demand: Information:

    Slide 22:America West Airlines Positioning

    CABIN SERVICE Full Service PREFLIGHT SERVICE Inconvenient Convenient No Amenities

    Slide 23:Mrs. Fields Strategic Use of Information

    Strategic Focus Competitive Use of Information On-line Off-line (Real time) (Analysis) Creation of barriers to entry: Data base asset: External (Customer) Revenue generation: Productivity enhancement: Internal (Operations)

    Slide 24:Mrs. Fields Management Information System

    Advantages Disadvantages

    Slide 25:Mrs. Fields Questions

    How might the MIS contribute to a reported 100% turnover of store managers? Will the MIS support or inhibit the growth of outlets (domestic and overseas)?

    Slide 26:Alamo Drafthouse Positioning

    MOVIE SELECTION FOOD QUALITY Many Few Poor Good

    Slide 27:Alamo Drafthouse Strategic Service Vision

    Target market segments Service concept Operating strategy Service delivery system

    Slide 28:Alamo Drafthouse Winning Customers

    Qualifiers Service winners Service losers

    Slide 29:Alamo Drafthouse Profitability Recommendations

    Slide 30:Discussion Topics

    Give examples of service firms that use both the strategy of focus and differentiation and the strategy of focus and overall cost leadership. Use the service design elements for a service of your choice to illustrate how all eight elements support the service strategy. What ethical issues are associated with micro-marketing? For each of the three generic strategies (i.e., cost leadership, differentiation, and focus) which of the four competitive uses of information is most powerful?

    Slide 31:Interactive Class Exercise

    The class divides and debates the proposition “Frequent flyer award programs are or are not anticompetitive.”

More Related