May 28, 2007 0 comments
service package design issues in venture creation and development
Entrepreneurs are often caught up in their enthusiasm to take advantage of what they perceive to be a marketing opportunity that they don't always analyse risk factors during the process of venture creation.
Because entrepreneurs' obsession, they often miss the need to develop a total service package, resulting in lost opportunities and customer dissatisfaction.
To avoid this, the entrepreneur should spend some time analysing the needs and expectations of potential clients; identifying the need to increase customers'expectations.
During business development and growth, the entrepreneur has to keep a finger on the pulse of the market.
This strategy means that management remains proactive, not only should it meet the customers changing needs, but also make it to be ahead of the competition because additional benefits and services are provided.
All businesses, whether rooted in manufacturing or service sectors, need to design their total service package and determin how the target customer groups are likely to perceive the benefits the firm has on offer.
Entrepreneurs should therefore examine the characteristics of total service package design to identify the key success factors that are likely to affect their customers perceptions and further choice of a provider.
Entrepreneurship and Small Business Start-up
During the 1980's entrepreneurship became fashionable and many people, who had previously not considered starting their own business, launched a venture for the first time. They felt that the time was right because they had an idea to exploit their talents.
On the contrary, there were many others, who just started out to explore alternatives due to desperation or corporate downsizing, and against an employment dependency.
In early 1990', though, not so many new small start ups were born because, according to numerous surveys, 'Loss of Market’ has become the major cause of business failure.
For a business to become successful and grow, there is a need for sufficient people to recognize the values to be gained through interacting with it, and exchange resources as a consequence. There is a need for people who has understands the target customers, their range of expectations and then how to meet or exceed these expectations.
The entrepreneur also needs to know how to manage the 'value chain'; how to combine his or her own resources with those available from suppliers -- at the right time, place and form; and how to maximize opportunities for customers to access the benefits on offer (Porter, 1985).
Many new ventures fail to recognize the value of this activity or don't manage it very well. This can result in stagnation or venture failure. The waste created by poorly designed ventures can effectively depress entrepreneurial activity and have dramatic consequences for the venturers, so that venture may lose money -- even not learning from the mistakes.
There is therefore a need for entrepreneurs to undertake 'customer needs assessment' and to match it to its value adding capabilities.
There is a need for the design of a unique service package that meets the customers' requirements so well that clients automatically recognize and accept what is being offered to them (Drucker, 1973; Peters and Austin, 1985).
Posted by Lisa
Categories: Business Entrepreneurship