| | |
| Summary |
| Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
|
Managing a Sprawling Service Business
Service companies must spread out to grow, adding new retail stores, sales branches, or service centers to reach more customers. But how do such companies know when expansion will pay off? Intuition can take them only so far. As distributed service networks increase in size, new analytical tools are needed to manage growth.
The take-away: A new approach called micromarket modeling offers a set of tools that combine local-customer segmentation, capacity analysis, and financial modeling to provide more robust insights for managers of distributed service networks. These tools improve performance at all levels of the network: at the individual service locations, within local or regional markets, and, ultimately, across the overall network.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
|
|
|
