As a result of the continued integration of national markets, short product lifecycles and the need to deal with local customers as well as the standardization requirements of companies are since forced to re-organize their value chain activities to become efficient and more adaptable. This trend is even made more effective with increase customer power (Briscoe, Keränen & Parry, 2012, p. In the modern day, customers can easily access and share information very easily. This then boosts the transparency of service and product offerings and thus affects customer behaviors. Due to these developments, efficient differentiation and production basing on product diversification is never sufficient for businesses to become competitive.
A rather dependable attribute is that companies ought to reinvent the business model before they are forced by external business circumstances. One of the core principles of the Service-Dominant Logic argues that goods are a distribution mechanism for service provision. As a result, goods hold a great deal of importance if the right services are to reach the consumer (Grönroos, 2006, p. That being the case, goods-oriented firms are urged to ensure quality products are produced all the time so that with them, proper services can tag along.
“To gain a broader scope of action and to enhance flexibility, many companies focus on service based strategies to extend their portfolio and ensure customer retention. ” (Lusch & Vargo, 2006, p. 411) Ideally, the traditional inclination of businesses is a logic that is at creating a separation between the producers who are knowledgeable, with the right level of experience and more innovative in the manner in which they deliver value to their customers (Aitken et al. , 2006, p. It is vital to appreciate the fact that the service dominant logic concept offers the right framework for the analysis of value creating activities.
Moreover, it offers the ideal setup for the integration of customer perspectives in activities geared at value creation in the form of offering excellent quality goods to customers (Aitken et al. , 2006, p. One the building blocks of the SDL is holds the notion that operant resources are a very fundamental source of business competitive advantage.
What this means is that, when a business is able to offer the high quality products that customers need, they will want to be attached to that business. With these new developments, the idea of selling or marketing to
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