Service Management: A Management Focus for Service Competition

In most western economies at least, both service firms and manufacturers of goods are facing a new type of competition, which has been emerging over the last decade or so. The technical solution embedded in a service or a good does not guarantee a solid competitive position any more, as it often used to do. This new situation can be called service competition, because managers will have to appreciate the importance of good service in most competitive situations and, moreover, to understand what new challenges they will have to cope with in this situation. The new competition requires a “service know‐how” on the strategic as well as on the operational level. The consequences for the strategic thinking in a firm and the challenges for management are discussed. A definition of service management is proposed and a set of principles of service management are put forward.