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Competitive Advantage of Manufacturing Firms Through ServitizationGROUP MEMBERS SAMIA AHMED MB2M-13-06 FATIMA ARSHAD MB2M-13-10By Manufacturing CompaniesCompetitive Advantage Through SERVITIZATIONServitization is viewed as the way in which firms provide an integrated bundle of both goods and services or add extra service components to their core offering.

SERVITIZATION

SERVITIZATION

Products today have a higher service component than in previous decades.

the Servitization of products.

Virtually every product today has a service component in it.

A Servitized firm

Siemens is committed to providing outstanding customer service for the lifetime of your appliance.

BUT HOW??SIEMENSArrange an engineer visit

Product advice

SIEMENS

Replacement spare parts & accessoriesInstruction manuals

Dishwasher repair action

SIEMENS

Servitization is the innovation of an organizations capabilities and processes to better create mutual value through a shift from selling products to selling product service systems..

SERVITIZATION

Selling product-----------selling product-service system

More and more manufacturers are competing though a portfolio of integrated products and services. This is a SERVICE-LED COMPETITVE SRTATEGY and the process through which it is achieved is called SERVITIZATION.

SERVITIZATION

It goes in a way

focused on Product.

put their efforts on back - end- units cost reductionproduct innovation

Traditional Concept

Manufacturers need to consider if they are to sustain future business and differentiate themselves from the competition.

They must integrate client and capability requirements to provide tailored solutions.BUTProduct is the entry ticket into the future business/profit stream. But all future sales depends on services, this is where reputation brand image profitability are determined.customer satisfaction & retention

In Case Of ManufacturingSignificant transformation from back end to front end activities.

Customer-facing front end units are established to engage directly with customers

Transformation to SERVITIZATION

Companies are pushing themselves towards servitization due to following factors:

technologyglobalization fierce competitive pressureprofitabilitydifferentiation in market Why do your customers choose to buy from you rather than from your competition?

Main DriversOffering great products, technologies or services is merely an entry stake.

The need that exists is to maintain an edge in the way their companies interact with customers. They recognized that customers often value how they interact with their suppliers as much as or more than what they actually buy.Now Manufacturers are of the view

Servitization becomes a customer - centric approach. How Companies are servitizing?The trick for companies is to redefine their offerings in ways that make it easy for customers to get the benefits they seek.

Shifting the Traditional Mind-SetThe boundaries between manufacturing and service are becoming increasingly blurred.More and more manufacturers are competing though a portfolio of integrated products and services and the process through which it is achieved is called servitization.

Concluding LG As An Servitized FirmIntroduction of LGLG Electronics Inc.is a South Korean multinational electronics companyIt is the world'ssecond-largest television manufacturerThe world'sfourth-largest mobile phone makerby unit sales in the third quarter of 2013.

The company was originally established in 1958 as Gold Star.The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derivedIn past, household products were sold under thebrandname ofLucky, whileelectronic productswere sold under the brand name ofGoldStarIn 1995, GoldStar was renamed LG Electronics, and acquired the US electronics companyZenith

LG Electronics PakistanIn December 03, 2011, LG Electronics and Ruba Electronics signed a distributor-ship agreement. The agreement was signed by Mr. H.S. Paik, President LG Electronics Gulf region and Mr. Manzoor Khan, Director Ruba Electronics in a ceremony.

LOGO

SLOGAN

"Lifes Good conveys a message that LGE enriches customers lives with its products, services and technology, and creates a unique brand identity of the company.

Customer Value Creation LG Electronics is committed to delivering on its promise to customers of enriching lives through technology innovation. LG Electronics strives to provide its customers worldwide with the best value creating products while listening to their feedback, and assisting with fast, accurate, and unique service.

COMMUNICATION FOR PRODUCT DEVELOPMENTLGE is conducting a thorough market and customer analysis to introduce products that satisfy customer needs. A close study of local customers lifestyles and collaboration with local research organizations are also part of our effort to identify customer needs.For example ,they develop customized TV for senior citizens with care facilities

PROSUMER MARKETING COMMUNICATION

LGE has been involve prosumer marketing activity that allows consumers to be directly involve in the development stage of products. One main example of this is the TROMMIZ program, in which 15 housewife bloggers participated in the development phase of the TROMM washing machine

PRODUCT PROTFOLIOThe company operates its business through Six divisions:Mobile CommunicationsHome EntertainmentHome AppliancesAir ConditioningIT ProductsEnergy Solutions.

Product Range of LG

Bundle Of Services LG is Offering To Their Customer PRODUCT QUALITY AND SAFETYLG Electronics places the highest value on providing customers with reliable products which they can use in a safe way. Product safety must be ensured under any circumstance, and product safety has the highest priority over sales objective, product design, marketability and expense issues.

PARTS & ACCESSORIES

Order product Part & Accessories direct from Shop LG or from an LG Authorized Parts Distributor.

De-installation & Reinstallation ServicesThey provide the scheduling, management and logistics concerns off your plate by dispatching our LG-certified service technicians to de-install the defective unit and reinstall the operation unit

LGs DIRECT SERVICE LG have teams of expert technicians in all major cities service centre. They provide:Repairing Services They use genuine LG replacement parts, never imitationThey Provide Home Service And Pick & Drop Free of CostThey do In-Warranty and Out-of-Warranty serviceWe Provide Technical Solutions And Support For All ProductsAll work backed by LG's promise of excellent service

LG Financing Advantage ProgramTo address business challenge, the LG Financing Advantage Program offers lease financing solutions tailored to your specific needs. LG makes it simple to acquire powerful and engaging display solutions for your present needs while providing the opportunity to upgrade as your business requirements change

DOWNLOAD & MANUALS

Download tutorial, manuals, documents, updates, software, etc for your product TV, Refrigerators, mobile, microwave oven ,etc

HELP AND SUPPORT LG provides following five options in its online help and support system in order to resolve any problem or for guideline regarding usage of product:LIVE CHAT :Chat Online with a Support Representative EMAIL: Send an Inquiry to LG CustomerService and Support PHONE :Call an LG Support Representative

REGISTERATION of PRODUCT: A few of the benefits that you can look forward to:Handy tips from LG's product prosFirmware updates to keep your LG product up-to-dateNews about warranty plans that are best for youExclusive previews of new LG products and innovationsSpecial LG offers and promotionsRETURN :In case of any damage during delivery of product or malfunctioning of any part within warrantee period then customer have return facility.

CONCLUSIONThe brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle with not just a product but the combination of product and services. So, LG wants to create customer value through their technological innovative product but also with best quality customer services