In general, Business Services is activities that are performed to assist a business, but do not deliver a tangible commodity. These activities are the result of expertise, convenience, or luxury. The growing business services industry has been defined as activities that help businesses meet the needs of their customers. In fact, more than half of all businesses receive some type of Business Services from a third party. While the term may be confusing, this article will clarify what these activities are and how they differ from economic services.
Business services are activities that assist business but do not deliver a tangible commodity
A business service is a business activity that does not deliver a tangible product to the customer. In contrast, a product is produced and sold in batches, with identical specifications on different markets. Examples of tangible products include bags, pens, and bottles. In addition, a business can perform services such as marketing, logistics, and warehousing. Providing a service is a different process than providing a product, and requires a different approach.
They are a continuum between service and commodity
A product can be categorized as a service or a good. In the latter case, the product has both tangible and intangible characteristics. A hybrid product provides both services and goods, such as travel by airplane. A product’s position on the continuum helps a marketer recognize opportunities for both products. Pure services are utterly intangible and cannot be stored or transported, and are almost immediately perishable.
They are a growing industry in emerging markets
Businesses are turning to the outsourcing of business processes in emerging markets because they offer competitive cost and quality solutions. Shared services centers offer a competitive advantage as they can scale and ramp up quickly. Companies can benefit from standardized processes and global models that allow them to respond quickly to M&A activity and growth opportunities in the region. And they can leverage the strong accounting and control framework provided by shared services centers. However, companies must be aware of the cultural differences and unique needs of the emerging markets.
They can be outsourced
There are many benefits of outsourcing certain business activities. Outsourcing allows you to focus on your core competencies, rather than the plethora of administrative tasks. Many small businesses do not have the bandwidth to complete every task themselves. This type of service helps save time and money while alleviating the hassle of attempting to do everything yourself. The following are some of the benefits of outsourcing business tasks. Let’s discuss these benefits and how they can help your business.
Service design
Business services are designed to create value for both the service provider and the customer. The process of service design involves mapping customer behavior and understanding the needs of customers. Ultimately, it helps businesses create services that add value to the customer’s life and add enrichment to the customer’s experience. This in turn leads to better customer retention and greater success for the business. Here are the advantages of service design. Let’s explore each of them.
