CHAPTER 10 SERVICE STRATEGY. Characteristics of Services Capacity Management Concentrated Service Niches Major Services.

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Presentation transcript:

CHAPTER 10 SERVICE STRATEGY

Characteristics of Services Capacity Management Concentrated Service Niches Major Services

CHARACTERISTICS OF SERVICES Produced and consumed at the same time More variability in quality control Intangible No inventory with services

CAPACITY MANAGEMENT Examples Hotel weekend specials Travel in Europe in low season Ski resorts in March Matching supply and demand for services

INCOME TAX Preparation by CPA’S April 10$500 Feb 10$400

CONCENTRATED SERVICE NICHES USAA Military Market Lending Tree Online lending Hotels Last minute reservations

HYATT PRICING Monday-Thursday$200 Friday-Sunday$100

LENDING TREE State Law – Cannot take out equity except by a Texas lending company

MAJOR SERVICES Professional Services Health Services Financial Services Educational Services

PROFESSIONAL SERVICES Lawyers CPAs Real Estate

SIMPLE LEGAL SERVICES Simple wills Simple tax filing Uncontested divorces

MAJOR CPA SERVICES Auditing Taxes Consulting

MAJOR ACCOUNTING FIRMS Big Four 2009Big Eight 1989 Price Waterhouse Price Waterhouse Coopers Coopers & Lybrand Deloitte Touche Deloitte Haskins & Sells TohmatsuTouche & Ross Ernst & YoungArthur Young Ernst & Whinney KPMGPeat Marwick & Mitchell Arthur Anderson

PROFESSIONAL SERVICES CHANGES LawyersPrice Fixing CPA’sSoliciting Competitors’ Business & Advertising

HEALTH SERVICES Doctors and nurses Hospitals and clinics Medical insurance

DOCTORS AND NURSES General Doctors Specialist Doctors Role of Nurses

% OF U.S. MEDICAL SCHOOL DOCTORS AS GENERAL PRACTIONERS % %

HOSPITALS AND CLINICS Large hospitals Emergency centers Minor health clinics

USE OF HOSPICE CARE % %

MEDICAL INSURANCE Medicare Medicaid Insurance providers

HOSPITAL PRICING CityHospital ProcedureHospital Cost #1#2 DallasLower Joint Replacement$162k$43k New Jersey Respiratory Ailment $100k$7k AlabamaPneumonia $150k$14k

FINANCIAL SERVICES Banking Insurance Stock Brokers

DISCOUNT STOCK BROKERS Fidelity Vanguard Schwab

EDUCATION SERVICES High Schools Community Colleges Universities

HIGH SCHOOL CHOICES Public schools Private schools Charter schools Home schooling

COMMUNITY COLLEGES IN HOUSTON AREA Houston Community College San Jacinto College Lone Star College

UNIVERSITIES State Public Universities State Private Universities

DIFFICULTY OF CHANGE IN EDUCATION Reforming and changing a curriculum is about as difficult as moving a cemetery

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