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Management article
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Reference no. 90212
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1990

Abstract

Services technologies are changing the way companies compete. Vertical integration, physical facilities, even a seemingly superior product no longer assure a competitive edge. Sustainable advantage is more likely to come from developing superior capabilities in a few core service skills. Technology is increasing the leverage of service activities. These changes have far-reaching implications for the way managers structure their organizations and define strategic focus.

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Abstract

Services technologies are changing the way companies compete. Vertical integration, physical facilities, even a seemingly superior product no longer assure a competitive edge. Sustainable advantage is more likely to come from developing superior capabilities in a few core service skills. Technology is increasing the leverage of service activities. These changes have far-reaching implications for the way managers structure their organizations and define strategic focus.

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