Model of Production System

...

Service Industry such as Beauty Salon

- service operations provide certain intangible services that may not be easily identifiable. Service operations can be classified into many industries, such as banking, hospitality, advertising and consultancy.

- have more opportunities to customize the services they provide. For example, beauticians and hairdressers must customize the styling and treatments to match the customer's hair, shape of face and other characteristics. Even in service operations where you receive a tangible product, the service you receive from workers may not always be the same.

- Service operations, by contrast, plan the environment according to how it affects customers. For example, service operations are concerned with how the atmosphere appears to customers. Dimensions of the service environment include the layout of furnishings, arrangement of signs and tangible cues, such as colors and sounds designed to enhance the customer experience.

- In a manufacturing environment, operations managers oversee the activities required to produce goods from raw materials. Issues managers in this environment face include managing the space to store raw materials, the flow of materials through the manufacturing process, how much product to produce and quality of output.

- Two Firms in the same industry

with different product lines

the two firms belong to Electronic Industry

SAMSUNG

PRODUCTS

1)Tablets

2) Mobile phones – Smart phones, normal phones,

3) Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc

4) Cameras and Camcorders

5) Refrigerators

6) Air conditioners

7) Washing machine

8) Microwave ovens

9) IT – Laptops, printers and accessories.

PLACE

It works on the channel marketing concept wherein there are three segments. Sales and service dealers, Modern retail and Distributors. Showrooms.

PRICE

-Skimming price

-Competitive pricing

- In a service operation, operations managers schedule workers to handle customer demand. They must coach and train employees to provide optimal services to customers. Service operations that also sell physical goods also face inventory control issues, such as how much to stock and when to order.

MOTOROLA

PRODUCTS

In creating products, Motorola concentrates on:

attractive design

excellent call-quality

ease of use

value-added features including music player, games, camera, and video features

high quality, reliable products.

PLACE

They market more on e-commerce

PRICE

Prices charged by Motorola are linked to the product life cycle.

As a product matures and sales increase, it is possible to reduce costs.

SAMSUNG

MARKETING FUNCTIONS

On one hand, Samsung uses various marketing vehicles across the year covering festive season as well as non-festive time.

On the other hand, it gives many offers and discounts to its trade partners to motivate them to sell Samsung above competition. With such a strategy, Samsung’s brand is on the rise so that both, the pull as well as push strategy is working simultaneously in Samsung.

OPERATIONS

Samsung outsources its major production into China which gives them the benefit of spending lower and earning higher. It gives them an edge on in the market to be competitive in terms of cost and sell.

Manufacturing - Samsung has cultivated an ability to quickly understand the functions and imitate and where possible given its strength, improve, on competitors product. Because it has the ability to manufacture products quickly as a contract manufacturer, it has the skill, to produce incremental product improvements quickly.

MOTOROLA

MARKETING FUNCTIONS

An important avenue for communication is advertising. Advertising is referred to as 'above the line' promotion.

Other types of promotion such as special offers and discounts are referred to as being 'below the line'.

OPERATIONS

Motorola try to achieve it by doing customization and flexibility. Motorola began customizing their Bandit pager in the early 1980s, to offer customers up to 29 million product combinations encompassing hardware and software configurations. Production was consolidated in one factory whereas before the project it had been divided among a number of facilities. Customers select their options and a salesperson enters the specification into a computer system.

- Two firms in the same industry

with similar product lines

Clothing Industry Zara vs H&M

ZARA

Financials

Since Zara is a subsidiary of the parent company Inditex, this report includes some financials about Inditex. According to the Datamonitor report from the Marketline industry profile of the French apparel retail industry profile (2008); this included charted information on Inditex about revenues and profitability. Their revenues started in 2004 with about $8 million and steadily rose to about $15 million in 2008. Inditex’s