Page 8: The service life-cycle
In general, depending on the size of the company, service providers can modify their offer more quickly than manufacturers can alter their products. United Airlines' ability to fine-tune its services rapidly in response to changing customer needs enables it to retain its market position. Growth strategies also depend on a capacity for 'rapid response'.
Service adjustments may involve, for example:
- expanding the range of services for some segments
- modifying how a service is delivered
- re-positioning services in chosen segments
- differentiating services even further from those of competitors
- finding untapped markets for services.
Like the product life-cycle, the service life-cycle needs constant injections of life to extend the growth phase and increase the profitability of the organisation.