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Article #12: Creating Growth With Service

This article is based around the fact that companies that are faced with saturation of their core product markets are turning to services when searching for ways to grow. Companies that have had success with this strategy are GE, IBM, Siemen's AG, and Hewlett- Packard Co., for example.
A certain approach in creating services-led growth can help managers of product companies improve the odds of success. Companies need to define their markets by looking at customer activity and outcomes instead of products and services. Relating a map of customer-activity to a service-opportunity matrix, managers can explore opportunities for new services in 4 directions. Managers also need to assess pitfalls and risks that these opportunities represent.
Peter Drucker has pointed out, "What the customer buys and considers value is never a product. It is always a utility-that is, what a product does for him." There are particular outcomes that customers......

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Approximate Word Count: 359
Approximate Pages: 2 (250 words per double-spaced page)

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