Strategies are different in service-providing business
The strategies of service companies are hugely different from that of manufacturing companies. Service companies generally face stiffer competition and fast disruption making it crucial to form a sound strategy and work accordingly. The strategies are:
1. Develop competitive advantage: Competitive advantages give companies an edge over competitors through specialization, brand image, reputation, unique services, and more.
2. Increasing cost efficiency: Manufacturing companies optimize equipment, while service companies focus on operations to increase cost efficiencies through software, training, and marketing.
3. Pricing strategies: Manufacturing companies use cost-plus pricing, while pricing services is complex and requires analysis and research, with potential pricing challenges.