A web-hosting company comes under the service-based company.Because they don’t have their own product, they actually sell the time of their employees to their clients. These companies work for other organizations. These are amenities, skills, and expertise, depending on the needs of the clients. Service-Based Companies are those that offer solutions to the customers and clients. Microsoft office suite, Microsoft Windows, Edge web browsers, etc.Īlso Read: Difference Between Product Marketing and Service Marketing Google Docs, Gmail, Google Drive, Google Translate, YouTube, Chrome, etc. Switches, Routers, Wireless, SecureX platform, Secure Firewall, etc.įacebook, Instagram, Messenger, WhatsApp, etc. These companies own one or more digital products.Īcrobat Pro, Photoshop, Illustrator, Spark, InCopy, etcĪmazon Prime, Amazon Web Services, AmazonFresh, Alexa, Echo, Kindle, Fire tablets, Fire TV, Appstore, Amazon Drive, etc In IT Sector, product-based companies are those that work on technology for their own customers.So, they sell their products to as many people as possible. For this purpose, they perform research and introduce a range of products that fulfil the demands of the majority of people. This means that they design products for a particular class or specific group in general. The products they develop are not for a specific customer.Then it develops a product which provides a solution for that particular requirement to the customers. Product Based Companies identify the gap between the product requirement and available products.It invests a very little amount in marketing and contacting clients directly. It invests a huge amount in advertising and marketing. They recruit a large number of candidates during campus placements. They hire only a limited number of candidates from top colleges around the world. The quality and quantity of service can be different at different times. This is because one can only experience it.Įvery time the quality and quantity of the product remain the same.
This is because one can see or touch the product. The client pays for the physical or digital exchange of the stuff. Content: Product-Based Vs Service-Based CompanyĪ Product-Based Company is one that has its own product to sell to consumers through the market.Ī Service-Based Company is an enterprise, that offers services to its clients. But, innovative ideas that can ease the work of different customers are the priority of a product-based company. This is because they offer services and solutions as per the needs of the customers. On the other hand, Service-Based Companies are those that offer services which are not tangible.įor a service-based company, customer needs are their topmost priority. So, we could say that the companies that sell any tangible item to their clients are Product-Based Companies.