COMMERCE 2OC3 Study Guide - Final Guide: Taco, Engineering Drawing, Service Design
1 May 2016
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Document Summary
Om ch 5 design of goods and services. Product decision: the objective of the product decision is to develop and implement a product strategy that meet the demands of the marketplace with a competitive advantage. The good or service the organization provides society. Top orgs typically focus on core products. Customers buy satisfaction, not just a physical good or service. Fundamental to an organization"s strategy with implications throughout the operations function. Product strategy options differentiation: shouldice hospital low cost: taco bell rapid response: toyota product cycles: may be any length from a few hours to decades. Maturity phase: competitors now established, high volume, innovative production may be needed, improved cost control, reduction in options, paring down of product line. Decline phase: unless product makes a special contribution to the organization, must plan to terminate offering. new product opportunities: understanding the customer, economic change, sociological and demographic change. 4. technological change: political/legal change, market practice, professional standards, suppliers, distributors.
