New Competition in the Service Economy: The Five Rules of Service

Abstract

In the Western world we are already living in a service economy. Services do not only account for a substantial part of gross national product, but they are also becoming the basis for a competitive advantage for many firms. Moreover, it is not only important to manage services successfully in the service sector of the economy. For manufacturers of goods, the service elements in their customer relations are becoming increasingly important. A competitive advantage can be developed by managing these services well. Implementing a service strategy requires a new “service know‐how”. Five rules of service are put forward and discussed in the present article. These rules cover demand analysis, quality control and marketing.