1. S ERVICE COMPETITION

2. by enhancing or adding services companies can be more competitive businesses that add services to support a product or another service offer value-added services (ex: appliance delivery) convenience is important in being competitive comfort, delivery, speed, etc. ex: NetFlix, eBay, same day delivery, etc.

3. S ERVICE C OMPETITION Degree of Service businesses that offer more services are often more competitive (ex: mattress delivery, hair stylists that also offer manicures). however the opposite is also true for customers looking for the best deal as extra services cost more (ex: IKEA, Food Basics)

4. S ERVICE C OMPETITION Selection a company offering greater selection is often a better competitor selection can be wide (more brands or types) or deep (larger quantity of one type of item) Reputation because services are intangible the customer cannot actually examine the service because of this the reputation of the company is crucial to competitiveness

5. S ERVICE C OMPETITION Price customers usually purchase products at the lowest price but they may be suspicious of a product of they feel that the price is too low the price is also affected by supply and demand

6. T HE P RODUCT /S ERVICE M IX whenever you buy a product you are also paying for services (storage, transport, etc.) businesses need to find the right mix of services to compliment the products they sell often businesses will add services that are unrelated to the product to attract customers (ex: restaurants in stores) service based businesses may also add products (ex: popcorn at the movies)

7. C ASE STUDY : M R P LOW