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ovations. These developments are market driven, and throughout, the concern is to identify ways of giving the customer both a better product and a fuller service so that the hassle and worry is taken out of new buildings leaving the customer with peace of mind and freedom to manage their own business and maximise profits.Key words: customer needs,petitive advantage,Communication with customersIntroductionAlthough the UK manufacturing and construction industry has contracted over recent years, there are still many UK panies operating in this sector. This Case Study demonstrates that it is possible to prosper in this sector by developing petitive advantage through new product and service development. It shows how the manufacturing of products can be bined with the provision of services to provide total solutions for customers.Having a petitive advantage means that an organisation is excellent at what it does and different from its rivals. One approach is through innovation and differentiation, . offering a new product or unique service.Portakabin has achieved petitive advantage through innovative product development 30% of its sales revenue (turnover) is generated by products that have been launched or relaunched in the last three years. The Portakabin Group is a private pany, owned by the Shepherd family, involved in the hire and sale of interim and permanent acmodation. For more information about the pany39。s structure, please see Portakabin39。s Edition 8 Case Study.Portakabin Limited, an important Group member, specialises in producing modular buildings, operating 45 hire centres across the UK, employing over 1,300 people and increasingly developing European operations. Buildings are manufactured and fitted out in a factory environment, while foundations are prepared onsite. The customer39。s modules are taken to the site, craned into position and linked together. Architectural features such as lifts, stair towers or cladding are added onsite. In terms of market positioning Portakabin is located at the top end of the market with quality products and premium pricing reflecting high value for money.Portakabin operates in an extremely petitive market with 20 major national petitors in addition to local rivals. Portakabin is the market leader with % of the overall UK market (its nearest petitor has 14%. In Europe, Portakabin has 3% of the market and petes with the world39。s biggest provider GE Capital, as well as major continental panies such as the French pany Algeco the European market leader. The UK market is mature, so growth is challenging to achieve. However, Portakabin must protect and build its UK market leadership and this need, coupled with a concern for customers, drives its current exciting new product and service development strategy. Portakabin39。s mitment to its customers is summed up in its charter, which includes:answering calls within four ringsa response to enquiries within 24 hoursthe building to be delivered on timethe building to be provided to the agreed contract sumgiving a rectification response within 48 hoursincluding customers in a customer care programme.In addition, if their building is not delivered on time Hire customers will receive a week39。s free hire for every day the building is late, up to a maximum of four weeks, whereas Sales customers will receive an additional six months warranty on their buildings.Sectors of the economyEconomic activity is usually divided into 3 sectors:(1)Primary industry involves extracting raw materials. When economies first start growing they are heavily dependent on their own raw materials . coal, iron ore and other metals that are useful in manufacturing processes. (2)As economies industrialise, secondary industries grow consisting of construction and manufacturing such as car factories. These use the output of primary industry to produce semifinished and finished goods chocolate products, clothing, homes, etc.(3)In the third wave of development, countries move on to focus on service industry. The UK today is dominated by service industries in which employees provide direct services to people (. a supermarket checkout assistant packing your bags), as well as business services (including financial services such as insurance, the hiring of equipment etc.)However, this classification is a simplification because many business activities involve more than one sector. Portakabin for example is primarily involved in manufacturing and assembly, although many of the processes carried out are in the tertiary sector . the hire of buildings. Only by bining manufacturing and assembly with the provision of services is Portakabin able to meet customers39。 needs.Portakabin provides an example of how to be successful in Britain39。s troubled manufacturing sector. Since the First World War we have seen a reduction of employment in manufacturing, and this trend is continuing. However, it is important to protect and enhance manufacturing because these products are so important to our daily lives the houses we live in, the cars we travel in. A number of UK industries have struggled to pete with cheap foreign imports, such as coal mining and car production.So what does it take to be petitive in modern industry? The answer provided by Portakabin is expressed in the brand vision which is to provide peace of mind through delivering quality products and services directed at meeting customers39。 needs. Nowhere is this more true than in the provision of services. For example when a client wants to relocate staff to new offices, Portakabin provides the modular buildings and a range of services including the airconditioning system, entry ramps for disabled employees, a fire alarm system, plus office furniture and puter cable points. The new buildings are constructed to a preagreed schedule. The client places strong emphasis on morale and mitment to employee motivation and this is achieved by creating a ple