Business services are those activities which are performed to fulfill the demands and necessities of an organization. These tasks are usually done by a company or an organisation to carry out its trade activity and maintain its growth in the market place. They are also given to the general public voluntarily for promoting social welfare and for fulfilling the objectives of an organization.

There are many types of business services available in the market. These include training services, financial services, etc.

The business service sector in the European Union (EU) has significant untapped potential and continues to face persistent barriers. However, EU Internal Market legislation and policy actions aim to remove these obstacles and stimulate competitiveness in this sector.

It is a major part of the EU economy and contributes about 11% to GDP, making it essential for the production of goods and services in Europe. It also plays an important role in the’servitisation’ of the economy through new combinations of goods and services.

There are some key differences between products and services that make it necessary for managers to understand the difference. A service business can only be managed by recognizing these differences and by applying an approach to management that is different from the traditional approaches that are used in product businesses.

What makes services so different?

One of the most important differences between products and services is that services do not have a physical form, unlike goods. A service cannot be stored for future use like a physical product, and it must be consumed as per the demand of the customer at that moment in time. This is a big difference, as it prevents stocking of goods for a longer period of time.

Another significant difference is that services are not standardized and there is no consistency in them as in products. The demands and expectations of the different customers are always changing. They need to be exclusively done each time and the delivery of a service cannot be delayed as it is in the case of goods.

The main barrier to entry into a service business is product differentiation, as a service business does not have a brand name like a product business. Instead, a service must develop a reputation and develop processes to communicate that reputation to customers and employees.

To develop a reputation, a service needs to be differentiated from its competitors and to provide a consistent quality of product that is not easy to replicate. This requires a high level of skill and innovation.

Creating this kind of reputation involves research, development and testing. This process can be expensive and difficult, but it is necessary to ensure that the customer will receive value for their money when they use the service.

A good example of a service that meets the criteria for this is information technology. This service provides value to a company by aligning its IT assets with its goals and supporting the ability of the business to be profitable.

Categories