In addition to products, countless businesses across all industries are now offering services to generate a regular income stream and higher margins, reduce fixed capital investment, build loyalty through marketing and beat the competition. However, many manufacturers neglect to develop a sound strategy, meet internal resistance, face pricing challenges and maintain existing practices when moving into services – and end up failing as a result.
To successfully branch out according to extensive research from the Wall Street Journal, businesses should dedicate a separate unit to develop and deliver the services, whether the unit is in-house or outsourced. Furthermore, businesses should offer a standard set of services that customers can customize and services customers can leverage as benefits for their customers.
Source: WSJ.com | June 22, 2009