The service sector of the European economy is expanding rapidly and has become an integral part of the production system. It contributes 11% of GDP and is increasingly being used to enhance the value of goods through new combinations of services and products. Business services are also playing an important role in the’servitisation’ of the economy and in increasing overall economic competitiveness.
Business services are various types of work that support a business without producing a tangible product. They include the broader categories of professional services and customer support, as well as utility and logistical tasks that are not associated with a company’s primary products. These activities may be performed by companies or individuals, and can be either business-to-business or consumer-facing.
These types of services can include anything that a company might need that is not directly related to its core product, such as legal services or accounting advice. These types of business services are typically offered for a fee, and can be provided by consultants or employees of the company.
Another category of business services includes maintenance tasks, which are typically done by contractors and can range from cleaning an office space to fixing an appliance. These business services can help a company stay productive and ensure that its property is functioning properly. A company might also use these types of business services to handle unexpected disasters, such as a pest infestation or water damage.
The success or failure of a business service is often determined by four factors: convenience, availability, quality and reliability. Like products, businesses that are successful at selling services must provide their customers with a convenient way to access the service, meet the customer’s needs or desires, offer consistent quality and reliability, and be priced competitively. Compared to the techniques that have traditionally been used to create a profitable product business, it is more challenging to develop effective strategies for a service business. Nonetheless, many of the same techniques that make a product business successful can be applied to a service business to increase its chances of success.