√ Definition of a Service Company, Characteristics, Characteristics, Scope and Examples

Definition of Service Company, Characteristics, Characteristics, Scope and Examples – In this discussion we will explain about service companies. Which includes the definition of a service company, the characteristics of a service, the characteristics of a service company, the scope of a service company and examples of service companies in a complete and light way.

Definition of Service Company, Characteristics, Characteristics, Scope and Examples

In order to better understand it, please refer to the review below carefully.

Definition of Service Company

A service company is a business whose activities produce products that are not "tangible" or services that have the aim of making a profit or profit. A service company can also be interpreted as a company that sells the services it produces, which has the aim of meeting the needs of consumers and making a profit.

However, service companies need physical or tangible products to carry out their business activities. For example, like a public transportation company that provides transportation services to consumers, then to be able to carry out its business activities the company requires means of transportation such as buses, planes or ships and also these means of transportation are products that have exists.

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Service Characteristics

The characteristics of the services include the following:

  • It has no form, which means it is abstract and cannot be seen
  • The resulting product is not standardized or varies (heterogeneity)
  • Cannot be separated "products produced and consumed together"
  • It cannot be stored because it has no form

Characteristics of a Service Company

By looking at the explanation above, it can be concluded that a service company is a company that has activities to produce and provide various types services such as security, convenience and so on to consumers who need them, service companies have the following characteristics:

  • Its income comes from the sale of services
  • In the process of producing services may or may not require assistance from physical products
  • The services offered are not the same, so each consumer can get a different type of service than other consumers
  • Do not have product inventory in physical form because the products sold are products that do not have a form. "Services" So the resulting product cannot be seen but the benefits can be felt.
  • Often the price level is not absolute because the price set by the company is cheap or high, depending on the level of consumer needs
  • The services obtained cannot be stored, so once purchased, they will be used up immediately.

Service Company Scope

Service companies are companies that only provide and sell service products to consumers. This company does not have raw material inventory and also does not produce goods. And also the services produced by the company can only be enjoyed by consumers when the service is provided to consumers.

So the scope of a service company starts when preparing services to when selling them. As an example is the services of a doctor, the scope of which starts from the time the doctor examines the patient and prescribes medicine to the patient.

The scope of a service company is not too large because it is only about preparing the services to be provided given to customers until the service producer sells his service products to consumers the.

For example, also in companies engaged in the transportation sector. Its scope is only when consumers buy tickets or use transportation services reach the destination and pay a sum of money for the services provided by the transportation company the. Like taking the bus, train, airplane, motorcycle taxi and so on. The amount of costs incurred is not fixed and can be lower or higher depending on the distance.

The scope of service companies is as follows:

  1. Communications: Telephone companies, tv stations, radio
  2. Profession: accountant, maternity clique
  3. Entertainment: cinemas, amusement parks, zoos
  4. Place of residence: hotel, hostel, guest house
  5. Individual skills: beauty salon, tailor, photo studio, barbershop.
Definition of Service Company, Characteristics, Characteristics, Scope, Example

Examples of Service Companies in Indonesia

As for some of the service companies in Indonesia that exist today, among others, as follows:

  • Engaged in the field of transportation, infrastructure and utilities, such as: Indosat Tbk, Garuda Indonesi Tbk, Telecommunications Indonesia Tbk, Jasa Marga Tbk, and so on.
  • Engaged in the financial sector, for example Bank Indonesia, Bank Central Asia Tbk, Bank Mandiri Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia Tbk, and so on.

Thus has been explained about Definition of Service Company, Characteristics, Characteristics, Scope and Examples, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.

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