Mass customization of products has become a common approach in manufacturing organizations.
Chapter 7: Mass customization of products has become a common approach in manufacturing organizations. Explain the ways in which mass customization can be applied to service firms as well.
Mass customization can be defined as, “using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers” (Daft, 2016,p.271). The goal of mass customization is providing the customer an opportunity to receive exactly what they want in immediate fashion. Service technologies require a different organization design to that of manufacturing technologies. A large difference lays within the main purpose of the organization. Manufacturing firms focus on the production of products whereas service firms focus on the production as well as the provision of the services. Examples of these service firms can be found in education, healthcare, and hospitality. Service firms, similar to manufacturing, focus on producing a customized service that the consumer wants and needs (Daft,2016). Burger King came out with a slogan “have it your way”, a well-known one at that, which promotes the ideology of mass-customization in the hospitality sector. LL Bean allows all products to be initialed another form of customization. Lastly, beloved Starbucks, allows customers to mix and match while creating off the wall beverages as frequently as one desires. Service firms have to focus on gaining the ability to make customers loyal by giving them a reason not to do business with any competitors. Service firms have to focus on customer contact since service providers have to interact directly with any employees or consumers. Service firms tend to portray information as well as intangible outputs and are often times not large.
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