Understanding the Macro-Environment – III and Understanding the Micro-Environment – I

. hello there welcome to this session on services
marketing with a practical approach my name is Dr Biplab Datta and my contacts are given
here so once you go through this video and you have certain queries you can always email
me about that and I will try to respond to you as early as possible, as much as possible
. so this is the 7th lesson which consists of understanding the macro-environment part
III that is the technological environment and also understanding
the micro-environment part I that understands our company so we are transitioning from the
macro-environment to the micro environment in this video . so we see the technological
environment this is the 4th and final strand of the environment that has to be analysed
and understood in order to be in tune with the latest developments in the world so technology
has enabled quick transfer of information across the world through the
internet high tech products have enabled suppliers to satisfy customer needs with lightning fast
speed and accuracy now fast food restaurants are actually high tech factories churning
out high quality food in the least possible time so this is where the technology has brought
us to Services are taking increasing help of high technology be it time and labour saving
accurate automatic teller machines vacuum cleaners or the room card with which the guest
can access his room and other services throughout the hotel So all these, so we see that high
technology is affecting the services and the services environment world over . so we must
understand how technology is affecting the purchase and consumption of services for consumers
companies that wish to be on the forefront of efficiency keep watching, documenting and
disseminating advances in technology that they can use to
deliver satisfaction or customer delight for example ginger hotels observed that educated,
time starved customers are looking for value for money and like to handle high technology
products and services accordingly they started the hotel service where customers can help
themselves around the hotel including checking into their rooms, operating lifts, making
tea, etc so you see that Ginger Hotels took advantage of the technology to help the guest in and
around the hotel with and the guest has to pay substantially in a lesser than 5 star
hotels or even 3 star hotel . so monitoring the macro environment so we see how the different
parts of the macro environment interact with each other so explosive population growth
which is a social phenomena leads to more resource depletion which is an economic phenomena
and pollution which leads consumers to ask more laws political
legal stimulating new technological solutions which if affordable can alter attitudes and
behaviour again social so we see that this political economy social and technological
issues they are intermingle with each other and if and changes in one of these also affects
changes in other types of macro environment . now we come to the understanding of the
micro environment part I so there we have understanding our company now the
in order to launch a service business and conduct it successfully we have to understand
the core competencies and competitive advantage of our business our company must have the
requisite resources and the capability to process customer possessions in order to produce
the intended outputs and experience for the customer we have to understand the internal
strength and weaknesses of our company refer time: 04:54) so for example if we run
a cinema theater we must be able to source motion picture films from the distributors
and have a theatre and a projector to screen the picture as per pre communicated schedule
we must have a facility to sell tickets to our customers we must also have eateries and
washrooms for the convenience of our customers our servicescape must have pleasant ambience
that can delight or at least satisfy our customers while giving them the right experience that
they can remember for some time and discuss with others . now what are core competencies
we have to understand the core competencies of our company core competency is a concept
in managing theory introduced by C.K Prahalad and Gary Hamel in 1990 it can be defined as
a harmonized combination of multiple resources and skills that distinguish a firm in the
marketplace . so here we have an example of core competencies
from the book written by Mohr Sengupta and Slater that is marketing of high technology
and product and services So here we see that here we see that the small engines are the
core competencies that is the trunk of the tree and the trunk of the tree is the core
competency it is the core product or the physical embodiment of core competencies that is the
small engine Now the core product must be significantly related to the benefits
and user receives now this small engines, this core competency has very strong roots
they have string roots in superior R and D superior manufacturing superior marketing
and knowledge of customers and superior corporate culture now these trunks are the core competency
can be useful in various industries like small cars snowblower motorcycles lawn mowers etc
now branches or canopy represents the widely different product markets to which
the core competency has provided access so this small engines is the product or the or
an embodiment of the core competencies so Hondas whole knowledge in the area of small
engines helps to have a core competency and to serve various markets product markets with
that core competency . then we go to understanding what is competitive advantage now competitive
advantage is a business concept describing attributes that allow an
organization to outperform its competitors When a core competency possess following 4
characteristic it is said to possess competitive advantage over its competitors That is a core
competency must possess these 4 characteristics that is it must be valuable must be rare it
must be inimitable and it must be non-substitutable so for example McDonalds has a core competency
of turning out burgers and price in a very small time in an fraction of hour so here
these the equipment and machinery that McDonalds’s employees those are valuable those are rare
the other companies do not have that and those are inimitable that means those cannot be
copied very easily and these even these are supply services that McDonalds receives from
it suppliers that supply chain is also a core competency of McDonalds and it is non-substitutable
that is something else cannot take place of the core competency that McDonalds
has so McDonalds has a competitive advantage over others . next we come to the 8th lesson
which is understanding the micro environment here we see the understanding our customers
understanding our competitors and understanding our collaborators thank you very much for
listening have a good day

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