What Are The Different Phases Of A Service Lifecycle?

The service life bike consists of the aforementioned four stages at the product life cycle: introduction, growth, maturity and decline. The characteristics of each phase are the same. The only departure lies in the strategies that tin exist used.

SERVICE LIFE CYCLE

SERVICE LIFE CYCLE

The service life cycle consists of the same four stages at the product life cycle: introduction, growth, maturity and refuse. The characteristics of each stage are the same. The just difference lies in the strategies that can be used.

I INTRODUCTORY Phase

A new service or a new form of a current service is said to exist in the introductory phase when information technology is first offered. As with goods, many new services never obtain acceptance by customers and never go past the first phase of the service life cycle. An reward that services accept over goods is that many new services can be introduced on a small calibration and expanded if acceptance grows. This small scale introduction reduces the fiscal risk associated with the introduction, making failure less costly.

II GROWTH STAGE

During the growth stage, the industry is growing speedily. Most firms offer the new service are seeing a positive cash flow.

For eg: a patient can learn virtually the incubation menses for chicken pox by either talking to a nurse or dialing into a vast library of prerecorded tapes. Second, patients can seek communication about routine illnesses such as congestion or abdominal pain.

III MATURITY Stage

During the maturity phase, industry sales level off. Competition becomes very intense since the just way a firm can gain the marketplace share or increase sales is to take them away from a competitor. The result of this increased competition is a decrease in overall industry profits. Weaker firms will be shaken out of the manufacture. At this phase in the service life wheel, consumers see very few distinguishable characteristics among the diverse firms in a service manufacture.

Iv DECLINE STAGE

During the refuse phase, industry sales decline. This sales drop is often due to a new engineering science that has been developed. For eg, typewriter repair services declined bcoz typewriters were largely replaced past computers which resulted in a need for a figurer service technicians and computer programmers.

Companies with services in the decline function of the life cycle have five options: divest, harvest,

prune, retrench, or rejuvenate.

a. When using the divestment selection, timing is a critical decision. The highest price can exist obtained if the divestment decision is made early in the decline stage or even in the latter part of the maturity phase.

b. A second strategy available to firms is to harvest the service. A harvesting strategy implies the firm wants to reduce expenditures every bit far equally possible to excerpt equally much turn a profit from the service as possible. Recognizing demand volition continue to fall allows a firm to reap the maximum profit possible before the service is discontinued or sold. Due to labour intensive nature of services, this strategy is seldom used.

c. A third strategy is pruning. Pruning involves reducing the number of services offered by a house. The most unprofitable services are discontinued while the most profitable services are kept. Pruning is a common strategy for service operations.

d. Retrenchment is a quaternary strategy and information technology involves selling off or endmost the unprofitable accounts while keeping or expanding the profitable ones. This strategy is good for big firms with multiple outlets and for the concern-to-business service sector.

Developing Brand new services:

New Service Characteristics:

Since services are intangible, information technology has to accept iv basic characteristics:

1.Information technology must be objective, not subjective

2.Information technology must be precise, non vague.

3.It must be fact driven, not stance driven.

4.It must be methodological, not philosophical.

Report Material, Lecturing Notes, Assignment, Reference, Wiki clarification explanation, brief detail

Concern Scientific discipline : Services Marketing : Service Design and Development : Service Life Cycle |

Source: https://www.brainkart.com/article/Service-Life-Cycle_6012/

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