Quality customer service: strategic advantage for the Indian steel industry

Abstract

Over the years, with the increasing competition of the marketplace, the distinction between manufacturing and service industries is getting blurred. The core, manufactured products today are so entwined with services, that they have become indistinguishable. Moreover, these services are expected by the customer as an integral part of the product. Slowly all business is tending to be service‐oriented, aimed at satisfying customer needs. The Indian steel industry has been liberalised, after decades of protection and the competition is fierce. Capacities are being added at a furious pace, newer technologies are being introduced and cheaper imports are being dumped. In such a scenario, the answer to gaining competitive advantage lies in providing superior value to the customer, by providing customer service with the product at a lower delivery cost. Using customer service to retain and acquire customers could provide a new strategic advantage for steel makers. This paper explores the key issues, and possibilities and presents a strategy for achieving strategic advantage through customer service, in the context of the Indian steel industry. The concept can be extrapolated for any developing economy.

Citation

Sinha, G. and Ghoshal, T. (1999), "Quality customer service: strategic advantage for the Indian steel industry", Managing Service Quality: An International Journal, Vol. 9 No. 1, pp. 32-39. https://doi.org/10.1108/09604529910248786