When a Physical Product Cannot Easily Be Differentiated, the Key

question 97

Essay

When a physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving quality. Identify the six main service differentiators.

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Definitions:

Human Resource Productivity

The measure of how effectively the human resource department and the overall workforce generate output or achieve goals relative to input.

Labour Expenses

Costs associated with compensating employees, including wages, salaries, benefits, and taxes.

Rightsizing

Adjusting the number of employees to fit the current needs of the organization, which may involve layoffs or hiring.

Layoffs

The temporary or permanent dismissal of employees from their jobs due to economic downturns, business restructurings, or other financial reasons.