Service Strategy and Market Position

Strategi Pelayanan

#Sasaran Pembelajaran Formulate a strategic service vision.Discuss the competitive environment of services.Describe how a service competes using the three generic service strategies.Discuss the service purchase decision.Discuss the competitive role of information in services.Explain the role of the virtual value chain in service innovation.Discuss the limits in the use of information.Categorize a service firm according to its stage of competitiveness.Conduct a data envelopment analysis (DEA).Visi Strategi Pelayanan Service Visi Pangsa pasa Sasaran What are common characteristics of important market segments?What dimensions can be used to segment the market, demographic, psychographic?How important are various segments?What needs does each have?How well are these needs being served, in what manner, by whom? Strategic Service VisionService ConceptWhat are important elements of the service to be provided, stated in terms of results produced for customers?How are these elements supposed to be perceived by the target market segment, by the market in general, by employees, by others?How do customers perceive the service concept?What efforts does this suggest in terms of the manner in which the service is designed, delivered, marketed?Strategic Service VisionOperating StrategyWhat are important elements of the strategy: operations, financing, marketing, organization, human resources, control?On which will the most effort be concentrated?Where will investments be made?How will quality and cost be controlled: measures, incentives, rewards?What results will be expected versus competition in terms of, quality of service, cost profile, productivity, morale/loyalty of servers?Visi Pelayanan Jasa Sistem Pelayanan PenghantaranWhat are important features of the service delivery system including: role of people, technology, equipment, layout, procedures?What capacity does it provide, normally, at peak levels?To what extent does it, help insure quality standards, differentiate the service from competition, provide barriers to entry by competitors?Lingkungan Kompetitif PelayananBiaya masuk yang murah Skala ekonomi yang terbatas Biaya transportasi yang mahal Fluktuasi penjualan yang cepat berubahTidak ada kesepakatan dengan pembeli dan pemasok. Substitusi produk untuk pelayanan Loyalitas pelanggan yang tinggi Kendala keluar dari pasar #Strategi Pelayanan Kompetitif (Overall Cost Leadership)Mencari pelanggan dengan biaya murah Menstandarkan Pelayanan yang dikustom Mengurangi biaya personal sebagai unsur pelayanan (Promosikan self-service)Mengurangi biaya Network (hub and spoke)Melakukan operasi pelayanan secara Off-line#Competitive Service Strategies (Differentiation)Making the Intangible Tangible (memorable)Customizing the Standard ProductReducing Perceived RiskGiving Attention to Personnel TrainingControlling Quality

Note: Differentiation in service means being unique in brand image, technology use, features, or reputation for customer service.#Competitive Service Strategies (Focus)Buyer Group: (e.g. USAA insurance and military officers)

Service Offered: (e.g. Shouldice Hospital and hernia patients) Geographic Region: (e.g. Austin Cable Vision and TV watchers)#Kriteria Memilih Penyedia Jasa Ketersediaan (24 hour ATM)Kenyamanan (Site location)Ketergantungan (On-time performance)Personalisasi (Know customers name)Harga (Quality surrogate) Kualitas (Perceptions important)Reputasi (Word-of-mouth)Keamanan (Customer well-being)Kecepatan (Avoid excessive waiting)#Service Purchase DecisionService Qualifier: To be taken seriously a certain level must be attained on the competitive dimension, as defined by other market players. Examples are cleanliness for a fast food restaurant or safe aircraft for an airline.Service Winner: The competitive dimension used to make the final choice among competitors. Example is price. #Service Purchase Decision (cont.)Service Loser: Failure to deliver at or above the expected level for a competitive dimension. Examples are failure to repair auto (dependability), rude treatment (personalization) or late delivery of package (speed). #Peraanan Kompetitif Pelayanan Informasi Fokus Strategi Penggunaan Informasi Kompetitif On-line Off-line (Real time) (Analysis) Creation of barriers to entry: Data base asset: External Reservation system Selling information (Customer) Frequent user club Development of services Switching costs Micro-marketing Revenue generation: Productivity enhancement: Internal Yield management Inventory status (Operations) Point of sale Data envelopment Expert systems analysis (DEA) #Rantai Nilai Virtual Marketplace vs MarketspaceCreating New Markets Using Information (Gather, Organize, Select, Synthesize, and Distribute)Tiga tahap evaluasi 1st Stage (Visibility): See physical operations more effectively with information Ex. USAA paperless operation 2nd Stage (Mirroring Capability): Substitute virtual activities for physical Ex. USAA automate underwriting 3rd Stage (New Customer Relationships): Draw on information to deliver value to customer in new ways Ex. USAA event oriented serviceKeterbatasan Penggunaan Informasi Anti-competitive (Barrier to entry)Fairness (Yield management)Invasion of Privacy (Micro-marketing)Data Security (Medical records)Reliability (Credit report)

#Menggunakan Informasi Mengelompokkan Pelanggan Coding grades customers on how profitable their business is.Routing is used by call centers to place customers in different queues based on customer code.Targeting allows choice customers to have fees waived and get other hidden discounts.Sharing data about your transaction history with other firms is a source of revenue.Tahapan dalam Pelayanan Informasi yang berdaya saing 1. Ketersediaan Pelayanan 2. Pekerja harian 3. Kompetensi distingtif 4. Penyampaian Pelayanan Berkelas Global Customers patronize service Customers neither seek Customers seek out the firm The companys name is synonymous firm for reasons other than out nor avoid the firm. on the basis of its sustained with service excellence. Its service performance. reputation for meeting doesnt just satisfy customers; it customer expectations delights them and thereby expands customer expectations to levels its competitors are unable to fulfill.

Operations is reactive, Operations functions in a Operations continually excels, Operations is a quick learner and fast at best. mediocre, uninspired reinforced by personnel innovator; it masters every step of the fashion. management and systems service delivery process and provides that support an intense capabilities that are superior to customer focus. competitors. SERVICE QUALITY Is subsidiary to cost, Meets some customer Exceeds customer Raises customer expectations and highly variable. expectations; consistent expectations; consistent seeks challenge; improves on one or two key on multiple dimensions. continuously. dimensions.#Stages in Service Firm Competitiveness1. Available for service 2. Journeyman 3. Distinctive competence 4. World-class service delivery

BACK OFFICECounting room. Contributes to service, plays Is equally valued with front Is proactive, develops its own an important role in the total office; plays integral role. capabilities, and generates service, is given attention, opportunities. but is still a separate role.CUSTOMERUnspecified, to be A market segment whose A collection of individuals A source of stimulation, ideas,satisfied at minimum cost. basic needs are understood. whose variation in needs is and opportunity. understood.INTRODUCTION OF NEW TECHNOLOGYWhen necessary for When justified by cost When promises to enhance Source of first-mover advantages,survival, under duress. savings. service. creating ability to do things your competitors cant do.WORKFORCENegative constraint. Efficient resource; disciplined; Permitted to select among Innovative; creates procedures. follows procedures. alternative procedures.FRONT-LINE MANAGEMENTControls workers. Controls the process. Listens to customers; coaches Is listened to by top management and facilitates workers. as a source of new ideas. Mentors works to enhance their career.

Strategi Penerbangan America West Target Strategic Advantage Low cost Uniqueness Entire Overall cost Differentiation Market leadership

Market Focus Segment #America West Winning CustomersService Qualifiers:

Service Winners:

Service Losers:#America West Strategic Service VisionTarget market segments

Service concept

Operating strategy

Service delivery systemPosisi America West Airlines CABIN SERVICE Full Service

PREFLIGHT SERVICE Inconvenient Convenient

No Amenities#Mrs. Fields Strategic Use of InformationStrategic Focus Competitive Use of Information On-line Off-line (Real time) (Analysis) Creation of barriers to entry: Data base asset: External (Customer)

Revenue generation: Productivity enhancement: Internal (Operations)#Mrs. Fields Management Information SystemHow might the management information system contribute to a reported 100% turnover of store managers?

Will the management information system support or inhibit the expansion of Mrs. Fields outlets? Why? #Alamo Drafthouse PositioningMOVIE SELECTIONFOOD QUALITYManyFewPoorGoodAlamo Drafthouse Strategic Service VisionTarget market segments

Service concept

Operating strategy

Service delivery systemAlamo Drafthouse Winning CustomersQualifiers

Service winners

Service losersAlamo Drafthouse Profitability Recommendations

Discussion TopicsGive examples of service firms that use both the strategy of focus and differentiation and the strategy of focus and overall cost leadership.What ethical issues are associated with micro-marketing?For each of the three generic strategies (i.e., cost leadership, differentiation, and focus) which of the four competitive uses of information is most powerful?Give an example of a firm that begin as world-class and has remained in that category.Could firms in the world-class service delivery stage of competitiveness be descried as learning organizations?Interactive Class ExerciseThe class divides and debates the proposition Frequent flyer award programs are or are not anticompetitive.