Many firms are now looking to integrated and user-friendly service as a mean of obtaining a competitive advantage in the marketplace. In so doing they are recognizing the need to align and integrate the products that are being offered. This is true for both manufacturing and service operations.
For example. Ritz-Carlton. a hotel chain that focus e on the top 5 percent of the hotel market. has operators answering its 800 reservation number instead of having a more efficient menu-driven system. Although the menu-driven y tern i more cost efficient. management at the Ritz knows that its high-income customer- will not waste their time it such a system. Similarly Cryogenics in Mansfield accuse a leading producer of vacuum pump that are critical item in the manufacture of computer chip. now has a Gets program Guaranteed Up-lime Service When a pump fail it impacts the
production of a computer chip fabrication facility that typically costs more than.a billion dollars. A call to the 800 number therefore puts the customer in contact with an engineer who diagnoses the problem and ships out the required parts within 24 hour This high level of service allows the computer fabrication plant to resume operations as quickly as possible thereby minimizing downtime. By integrating goods and services into a total package companies are better able to
address the overall needs of their customers .