The conversion process includes the segmentation analysis of that area where the products or services are going to be delivering.These steps involve of converting raw materials as input and then converting in to final products or services. The management or strategic business process is required to fulfil the requirement.
Service operations strategy
As with service operations require a strategic approach to manage the product services and have reach to the customer. In service to the particular area it is necessary to find out the operations strategy for the services or products which as follows:
This involves how to define the target market and then execution of the services with what percentage of customers is going to serve by the organizations that are the target customers.Next, the firm must determine its core competence or what will distinguish it from other service firms, i.e., cost leadership, differentiation, or focus. At this point, the firm then must make decisions regarding its mission and high-level goals and objectives for that area.
Service strategy must be defined in terms of better customer satisfactions do delivery the products and services. The service concept should include delivery system, operating system and management system.The service strategy links the firm’s strategic position with tactical execution. The firm first determines the competitive strategy in order to establish the market for its products or services.
These competitive strategies are the characteristics of the organization or the things to find out whether it is better or does better than other services firms for costing, service delivery, quality and flexibility. The competitive strategy of the firm should be both an order qualifier and an order winner. In order to compete in the market the order qualifier characteristics is must. If any organization or firm is having lack of these characteristics then it might possible that the consumer will not purchase from the firm’s service.
To decide whether the consumer is purchasing from the firm’s service or not over its competitors is determined by winner characteristics.The service concept then is the set of competitive priorities that the target market values.