Question

In: Operations Management

Although there are some basic similarities between product design and service design, there are also many...

Although there are some basic similarities between product design and service design, there are also many differences between the two. Identify some key issues that influence design. Identify and describe some key factors that cause organizations to redesign their products or services.

Solutions

Expert Solution

The key issues that influence design are:

  • Market Demand
  • Customer needs and expectations
  • Product quality
  • The cost to Price Ratio
  • Existing product line
  • Production efficiency

The key factors that cause organizations to redesign a product or a service are:

  • Product improvement: When the customer demands are not met and the demand is declining in the market, the company should redesign it to make it more attractive.
  • Technological innovation: When the company realizes that adding a new technology to the product or a service will make it more attractive to the end users.
  • Changing customer needs: When the customers are asking for change and they want it as soon as possible. This leaves the company with no other option than redesigning it completely.
  • Product failure: The new product will not be received well by the customers and they prefer using the older version of it. The company will have to make changes to the product and take it back to the basics again.
  • When the product is in the maturity stage of PLC: The company will be aware that the product has reached the maturity stage and they will have to make changes in order to introduce to the market again in a new version.

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