Question

Explain how the operations strategies are different when applied to a service company such as “Tata Sky” versus a manufacturing company such as “Tata Steel".

Answer 1

Tata Sky is an Indian Direct-to-home(DTH) satellite television provider. It provides DTH set-top boxes with an antenna that can be installed at any home with a TV set.

Tata Steel is a large Indian steel manufacturer with a global presence. Its products include various types of steel, pipes, tubes, etc.

The biggest difference in the operations strategies of the two organizations come from the fact that Tata Sky operates in a B2C model, where it sells its products directly to individual customers while Tata Steel operates in a B2B model, where it sells its products to other businesses, wholesalers, distributors, etc but not to individual customers. Because of this difference, the operations strategies of both organizations are very different. The operations strategy of Tata Sky is focused on increasing the number of individual customers while the operations strategy of Tata Steel is focused on increasing the quantum of sales ordered by different businesses, that buy products from Tata Steel. Tata Sky operates through multiple distribution channels so as to reach the maximum number of individual customers while Tata Steel generally operates through a limited number of distribution channels.  

Another difference in the operations strategy of the two organizations is that Tata Sky has its focus on providing high-quality services to its customers while Tata Steel has its focus on producing a large variety of high-quality products. Also, Tata Steel decides the pricing of its products based on global raw material prices and availability, while Tata Sky decides its pricing based on local competition and regulations.