Drop servicing is like drop shipping only that in this instance, one sells services as opposed to products. This practice has seen the rise of vendors selling services on the internet, creating a paradigm shift that has disrupted the industry significantly. This has seen the emergence of new trends that have bankrupted some companies as virtual service providers take over the industry. Currently, drop servicing blueprint companies have come up to guide individuals and businesses on the best practices to help them grow their venture and provide their services to the target demographic.
Drop servicing is one of the many forms of disruptive innovations that are popular currently. It has upset the existing market and is currently a new frontier targeting the same market as the conventional companies in the same business. The traditional value markers in the service industry have gradually changed to adapt to the new standards set by drop servicing. Knowing the characteristics of disruptive innovation is essential for anyone looking to go into the business.
This form of service has a higher risk of setting up and operations than big companies offering the same. This is because the business does not have to comply with the standards set by regulatory bodies on matters financing and the quality of service. Going in blind without investors is one of the risks that a business owner must consider. Lower margins and slow growth are the other factors that one should think about before investing in drop servicing. This business must also include the latest technology in the market, and this is an aspect that will affect the day to day operations of the organization.
The growth of drop servicing is dependent on many factors, and planning is one of the fundamental elements. Some services grow to throw the conventional systems out. Here are some of the drop servicing products that have disrupted the industry and became the new normal.
- Subscription-based film streaming – movie streaming services have taken over film distribution in more than one way. Video rental by Blockbuster faced a steady decline with Netflix and other brands in this industry into the market. Currently, this company is joining the bandwagon to be among those that offer video streaming services as DVD and game rentals is now a thing of the past.
- Hotel industry – in the past, one had to check into a hotel when visiting other places. This is not the case anymore with the entry of an assortment of hosting and Couchsurfing applications and sites available on the World Wide Web. Air BnB is one of the drop services that has seen hotels worldwide lose a significant number of patrons. Some hotels are signing up to be members with Air BnB to reach their target market.
There are many other instances of drop servicing that has affected different sectors of the economy, moving operations from human to the software. However, the drop servicing business looks profitable. It has demerits that one should be aware of before using or setting up such a business. Some of the