July 15, 2022

Difference Between Service and Product Based Company

Placements are something unique. It is not an assessment but rather the beginning of the lifecycle of your professional life.

However, deciding between product-based and service-based businesses. can be incredibly tough. Specialising in these domains can have a substantial impact on your professional path.

So here we are with a guide to identifying the differences between service and product-based companies. So scroll down to understand those differences now.

Difference Between Service and Product Based Company

These are the differences between a Service and Product Based company:

S.No	Basis For Comparison	Service Based Company	Product Based Company
1	Meaning	Service-based businesses provide clients with solutions in the form of services that are tailored to their needs.	Product-based companies sell to customers a product that is developed and distributed for a specific task.
2	Motive	In service-based businesses, the client is of paramount significance since customer satisfaction is the prime objective.	In product based companies the quality of the product is fundamental. People will buy more if the quality is good.
3	Deadline	Service-based companies clients usually approve project timelines following consultations about their unique needs.	Product-based companies internal management determines project timelines depending on market circumstances.
4	Turnaround time	Service-based companies turnaround time is long and relies on the individual needs of the clients.	Product-based companies have a rapid turnaround time since customers purchase their products quickly.
5	Learning Curve	In a service-based company, the learning curve is moderate, and it might be tough to break off from mundane responsibilities.	In a product-based company, the learning curve is exceptional, and adequate methods are provided to continuously experience new things.
6	Team Size	Service-based companies have large team sizes, and the teams are much more widely dispersed, with one or more persons with identical duties.	Product-based businesses use smaller, close-knit teams in which each member has a specific and defined job to perform.
7	Marketing	Service-based companies invest significantly little to nothing on marketing and instead approach prospective customers to provide tailored services.	Product-Based companies invest heavily on advertising and promotion in order to reach their consumers.
8	R&D	Service-based companies research and development has limited headroom in the company working culture.	Product based companies research and development contributes a significant part of the company working culture.
9	Example	Service-based companies are Accenture, Infosys, IBM, TCS, Deloitte, etc.	Product-Based companies are Adobe, Amazon, Meta, Microsoft, Google, etc.

Final Words

These are some distinctions between product-based and service-based organisations. So, to get started, study hard and define your career ambitions early in college to have better prospects during campus placements.