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4.1.2 Product Diversity

Table 4.1.2 Product Diversity

LevelDescription
1

Single products or services are products or services that are provided where the products or services perform basically the same functions. The products or services are similar in type excepting that they may be more or less sophisticated, eg a computer or some other piece of equipment that has more or fewer features; or, the product or service may be packaged or distributed differently. Examples are a hard cover and a paperback version of a book. In the services area the provision of health insurance is an example, or the services provided by a medical practitioner or an architect or entertainer or a music teacher, or a precious metals trader.

2

Related products or services are products or services that are interrelated through either horizontal or vertical integration of the organisationís products or services. Examples are: a bank where products are all related to money, but different services related to money are provided, eg, foreign exchange dealing, provision of housing and business loans, and cheque account administration; or a hospital which provides a range of medical services, eg diagnosis, surgery, rehabilitation, and counselling; or a university providing a range of educational courses. Alternatively, an organisation that sells a material at several stages of its processing, eg crude oil, semi-refined oil products such as tar, and fully refined products such as petroleum. In the case of a healthcare organisation this could include hospital facilities, and nursing homes, and possibly also pharmaceutical outlets. Another example is a manufacturer with retail outlets for its product.

3

Diversified products or services are products or services that are distinctly different in their type and use. For example: an organisation providing telecommunications, banking, and tourism services; or a National, State or Local government.

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