Business services are activities that help companies in a variety of ways without delivering a tangible product. Large firms, in particular, rely heavily on these types of services for marketing, production, cost and other aspects of their work.
While a product business can survive without strong, centralized leadership in its revenue-generating lines, a service business needs an effective tool kit to achieve its goals. It must focus on the value of customer experience, balancing the autonomy of individual service models with the collective performance of shared services. It must also be prepared for the reality that a customer’s actions can influence the quality of the service that she receives. For example, a customer who dithers at a fast-food counter can affect the efficiency and speed of service for everyone behind him.
Many businesses of all sizes across the globe prefer to retail or rent workspace rather than own it, so they rely on real estate services to find suitable locations and negotiate rental agreements. Similarly, some companies require insurance services to protect their physical assets and practices.
In addition, business-to-business (B2B) services are provided by a range of organizations for the benefit of other trading entities. For example, car manufacturers often perform B2B transactions with wholesalers to buy the tires and hoses they need to build their cars. The EU Internal Market legislation and policies aim to stimulate further growth in this important sector.