Service policies of German manufacturers: Critical factors in international competition

Hermann Simon

European Management Journal, 1992, vol. 10, issue 4, 404-411

Abstract: German companies perform well in export markets, based on product quality and technology. But the competitive advantages and value-added of service are expected to grow sharply in the coming decade -- especially product-focused service. Hermann Simon has identified 'Hidden Champions' in Germany -- companies like Heidelberg Printing Machines, BMW and Mercedes-Benz, which integrate market and technology as equal driving forces and provide quick and reliable customer service. But there is much room for improvement in service provided by German manufacturing companies. They could upgrade their design and marketing of service, and apply better quality control such as setting quantitative performance goals, measuring the value of service and interpreting the results.

Date: 1992
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