Manpreet
The service economy is a term having its origin from the mounting popularity and income generation of the service sector. The service sector has showed decent results and has engrossed a major portion of income being generated in the global economy. As a result of all this, it is now pointed out as the most effective income generating sector in an economy. This term is also popularly known as Functional economy that highlights the importance of the service being offered in addition to the product being sold.
Service is an indispensable part of every product being offered for sale and the customer pays the price of the service that he expects, inclusive in the cost he pays for the product. This is also known as Servitizing the product. Servicing a product has served to a great extent in maximizing the profits and GDP rate of an economy. Further, it aids in upgrading the market goodwill of a firm by along with increasing the digits of their profits.
Some remarkable positive effects of the service economy can be seen on the environment that adds to its value and importance. It has become much easier to integrate with the nature’s service, state service, urban ecology, industrial ecology with the service economy and has become convenient to experience economy of real quality of life.
According to some recent studies it has been unveiled that if the service economy kept progressing this way then it can enable global economy experience the much advanced technological upgradation along with high profit ratios. The better it will be used and implemented the more it is expected to deliver. Service economy is efficient enough in serving two purposes simultaneously, creating employment opportunities along with enhancing the production capacity of an economy. The proper usage and valuation of service economy can change the lives of millions.
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