We learned last week that successful companies have a competitive advantage that their customers are drawn to. 

We learned last week that successful companies have a competitive advantage that their customers are drawn to.

Angela Gaddie

We learned last week that successful companies have a competitive advantage that their customers are drawn to.  It can be related to time, cost, flexibility, quality, or innovation (Collier & Evans, 2019).  It takes precise planning and a strong strategy to bring either a good or service to the market that is more desirable than that of the competition.  Services are unique in that there are various elements working together to provide the overall design.  The inefficiency of even just one of those elements can be detrimental to the service experience and how valuable it is to the customer (Collier & Evans, 2019).  In order for a business to understand what their customers value, it can use technology to hear their ‘voices’ whether it be through surveys, reviews, tracking behavior, and more.  It is important to create a blueprint of how the company envisions the service so it is not left up to varying levels of services delivered by people (Harvard Business Review, 1984).

Information technology has become so advanced that it can replace many human activities that have been relied on for so long but have been so limited.  Facility location and layout is a key element of the service-delivery system design.  Target, for example, along with other major retailers have store layouts that are mapped on their phone applications that allow shoppers to choose the item online and the app directs them to the exact isle of the store it is in so it can be easily found.  Servicescape describes the physical environment or surroundings where a service is performed (Hitesh, 2019).  Imagine a children’s orthodontist.  The orthodontics is the service, but one place could be more popular than another because of the environment.  One office may have Netflix or a gaming system at each station for the kids to watch or play to keep them distracted from the procedure.  This would have a positive impact on the patient’s experience resulting in more referrals, return business, and preference over the competition.  The service process and job design ensures that the service is consistent and reliable while reducing the risk of human error.  Online banking is a good example since it eliminates the need for human interaction.  A banker or teller could process a transaction incorrectly or be too busy causing the customer to have to wait in a line whereas the automated banking services eradicate wait times and can generally be trusted to perform the service correctly the first time.  Technology and information support systems work to improve service “speed, accuracy, customization, and flexibility (Collier & Evans, 2019, para. 5-4d).  Uber is a prime example of a company that has leveraged technology to optimize routes, identify and match customers with drivers, and take payments electronically for the ultimate convenient ride sharing service that far outweighs the benefits of hailing a cab.

Collier, D. A, & Evans, J. R. (2019). Operations and supply chain management. Cengage Learning.

Harvard Business Review. (1984). Designing Services That Deliver. Retrieved from Harvard Business Review website: http://track.smtpsendemail.com/9064971/c?p=lStSWDt7CRwBqJmU-pwurnubdCDSONYYqqyvgjOL0YG4mpyAOojTwdot2XWuQmqjIRdqfMTjCiGADQln8cBXmY8fogT8MPvvcC4HyjFLhVQ33O5V9vjeqvvlfeJUKL6wc3mO36lp2-4lSAU79gKDMAHIyGC-nNhSbO4Khhi326g= (Links to an external site.)

Hitesh, B. (2019, September 30). Servicescape: Meaning, Examples, Elements, Approach, and Roles. Retrieved from Marketing91 website: http://track.smtpsendemail.com/9064971/c?p=CVhg4lnmNADVirUX1u3MT1BrP3ATPaugYZSU1hMczGDbBoplJjEVVmVWkCxt5bHl4OIKSubggFU-1BlsiiY7OwAbQhHHf_7sy71Vo8nUAGSxmyEp-aOw0yYceH2mZKb8j3hsaJ6bucztbgFFGarB9WwzZQfQfd4PPuvu_4w8bFY=