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Service Management - Essay Example

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Name Subject Date Service Management Operation management in service sector is focused on individually-based approach. Container-based shipping “made the world smaller and the world economy bigger” (Desrochers, Pierre, 2007). COSCO Company provides its customers with convenient container-based shipping…
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Download file to see previous pages Nevertheless, there are numerous challenges experienced by the company and very often their customers are looking for services from other container-based shipping industry companies. In order to become a competitive rivalry for other shipping companies, COSCO is focused on service strategy improvement. China positions itself as the largest international company, providing with their services 75% of international cargo volume. COSCO in XXI century “will focus on providing differentiated and value-added services to acquire long-term contracts and life-long customers. As alliances and mergers have become a major part of the international shipping industry, we (COSCO) will co-operate closely with our partners. We aim to be a world-class global shipping service provider, in the near future, with high efficiency and high quality service” (China Cosco Holdings Confident on Recovery in Container Rates, 2010). Therefore, COSCO positions it as the world’s leading shipping industry company, which is able to provide its customer with efficient, high quality services. The Company contributes much for financial and technological development of the company. Thus, it should be noted that COSCO is concerned about improvements of infrastructure of the Company, development of strategies, which refer to the modern needs of the international society and the newest tendencies in the shipping industry. Starting from 2002 the country is able to offer to the clients “a comprehensive package of ocean shipping services with fleets covering a wider range from traditional bulk tonnages to more value-added ones such as post-panamax container vessel, heavy-lift ship, LNG carrier and so on” (China COSCO 2010). Value-added services and life-long customers are of great importance for COSCO. The main challenge for the company occurs, when potential clients find out that to reach Shanghai from Chongqing takes about 900 miles. Thus, shipping goods from Chongqing to Shanghai takes too much time. The Company tries to deal with this problem in spite of the fact that rail system of China is fragmented. Moreover, potential international clients are scared off by challenging import-export documentation: it takes too much time at the customs. Licensing and trade challenges in China can be facilitated by WTO. Thus, service challenge should be solved within the company and nationally. To repair roads in the country and improve roads in the ports is on behalf of the Chinese government. COSCO should work hard in order investors wanted to support the Company. “Green protectionism policy” is of high relevance in the world. Therefore, COSCO is focused on environmentally friendly shipping services. Potential clients are interested in COSCO’s post-crisis measures, because sub-prime crisis special study team in COSCO enabled the Company to recover as soon as possible. An innovation of the Company, such as tariff decrease for ASEAN countries from 9.8 percent to 0.1 percent is rather attractive for the international partners (China, Korea Aid for Shipping Industry May Prolong Rates Slump, 2009). Out of 4 million of TEUs globally, many countries are estranged from container-based shipping services. COSCO and its subsidiaries have more than 120 ports in 40 countries. The sustainability of the Company is provided by logistics. There is a shift from passive service to active service. Starting from 2010 the Company implements TCSS, system, which considers customer’ ...Download file to see next pagesRead More
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