Discuss the strategies available for new service ...

[RRMR]

Discuss the strategies available for new service development.

Question 2

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its:
 A) internal environment.
  B) external environment.
  C) mission statement.
  D) competitive strategy.
  E) strategic environment.

[IRincones]

Answer to Question 1

New-service development within service firms can be implemented through the introduction of complexity and divergence. Complexity is a measure of the number and intricacy of the steps and sequences that constitute the process  the more steps, the more complex the process. Divergence is defined as the degrees of freedom service personnel are allowed when providing the service. New service formats can be developed by increasing or decreasing the firm's levels of divergence and/or complexity.
Companies that wish to pursue a volume-oriented positioning strategy often do so by reducing divergence to create product uniformity and reduce costs. A niche positioning strategy increases divergence in an operation to tailor the service experience to each customer. The specialization positioning strategy reduces complexity by unbundling the different services offered. A penetration strategy increases complexity by adding more services and/or enhancing current services to capture more of a market.

Answer to Question 2

A