Amazon.com offers a very broad range of services and products at competitive prices. Its
competitive priorities would include fast delivery time, on-time delivery, customization,
variety and low-cost operations. As a business, Amazon.com is actually assembling a
customized basket of goods that must be delivered in a short window of time in a dependable
fashion. Low-cost operations are needed to remain competitive. To remain in business,
Amazon.com needs to maintain high volumes of traffic. Operations strategy must focus on
stock availability and quick, economical, and dependable delivery.
The hospital’s commitment
to provide attention to patients arriving to the emergency unit in
less than 15 minutes and never to turn away patients who need to be hospitalized
the facility must be designed to have extra capacity in both beds and emergency room
facilities. It must plan on having extra personnel in the emergency room and also plan on
having additional emergency personnel on call to take care of unprecedented heavy loads. In
line with the mission statement, maximum utilization of the facilities (i.e., beds and
emergency room personnel) would not be one of the performance objectives for the hospital.
FedEx traditionally competed on the basis of fast, dependable delivery. Before the boom in
Internet applications, many businesses relied on FedEx to get things to other businesses
overnight. Now, this need is beginning to diminish as sophisticated systems are being installed
to assist companies in planning operations better. And, the dot-com companies are adding
more demands for ground deliveries to specific customer doors, at low cost. FedEx, to remain
competitive with companies such as UPS, will have to move into the door-to-door delivery
business, perhaps through acquisition. Nonetheless, it will require changes to this company’s
A service package consists of the supporting facilities, facilitating goods, explicit
services, and implicit services. The responses below are indicative of the four major
components of a service package in each situation.
For an insurance company, the supporting facilities would include the office space
and equipment and the insurance agents and support staff. Some insurance companies
have their own accident repair estimate facilities. The facilitating goods would
include all of the office supplies as well as the damaged automobile, which sets the
service in motion. The explicit services would include financial support in case of an
accident, creating a policy fitting the client’s needs, and servicing damage claims
(sometimes representing a client in a court case). Implicit services include the
courtesy of the agents, the promptness of response, and convenient access to agents.