New Service Development in the Context of Organization Strategy

Povilas Švogžlys

doi:10.7176/ejbm/11-3-18

Abstract

In order to stand out in a competitive environment, business entities pay lots of attention and resources for shaping a new business strategy or developing an existing one. A well-designed and consistent implemented strategy allows the business entity to achieve new goals, assess progress, distribute the workload evenly and develop an efficient decision-making system. This research is becoming extremely relevant in today’s context when more and more service organizations are growing and constantly offering new job positions. In this case one of the potential business strategies that business entities could take is the development of new services. The concept of strategy by itself is analyzed in accordance with the researches of different authors. The added value of the new services development process for the business entity is evaluated from a strategic point of view. Based on the analysis, the guidelines for further research were formulated. The methods of comparative analysis and synthesis were used. Keywords: organization, new service, development, strategy, strategic decision, consumer DOI : 10.7176/EJBM/11-3-18

Highlights

All companies that work in the service sector face a wide range of competitive challenges because of worldwide globalization
The development of new services becomes increasingly important in the overall context of organizations as it has been analyzed fragmentary by researchers
The following terms and expressions were used as keywords: importance of developing new services, significance of new service development, NSD as a part of organization strategy, NSD in the context of organization strategy, NSD importance, strategy, new service development value, service sector

Summary

Introduction

All companies that work in the service sector face a wide range of competitive challenges because of worldwide globalization. A properly prepared and consistently implemented strategy allows the business entity to achieve its business goals, assess its progress, allocate resources properly and understand all needs of the targeted customers. In this case, the development of new services can be compared with a strategic solution that can be a long-term business plan for many companies working in the sector of services. The novelty of the research – many studies related to the development of new services were focused on the origins, structure or roles of participants of this process, but in the context of constantly changing business conditions, it is necessary to determine the significance of this process for the future strategies of modern organizations. The research is based on the methods of scientific literature analysis, synthesis and modelling

Objectives

Methods

Conclusion