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Difference between a "Service" & a "Product"

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According to a leading entrepreneur in Pakistan, services and products (both a form of business) are as if two opposing realities, as the difference between these two modes being very sharp. He observes that a service (for example, the job of a surgeon which deals with standard cases) requires the service provider to execute what he's best at in the best manner in order to 'create value'. The problem with making a new product, however, according to him, is that there's no repetition involved to save the day; rather, every time a company commences to develop a product that must be different from what is being offered in the market, it needs a whole new set of capabilities, technical expertise and organizational skills just to innovate a product, not many products. Moreover, another dilemma is that this, unlike providing tedious service(s), consumes an excessive amount of energy and resources. Burn rates, like stakes, are very high.

1 did criticisms:

Salman Latif said...

Put a number of service vendors in the market and each of them, too, will have to come up with the most innovative and unique ideas to stay in the game.

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