What are products based companies and services based companies.
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A product based company makes a product. Ie. I make peanut butter. I collect ingredients and process them into a physical product.
A service-based company delivers intangible services. Ie. my company employs a group of psychologists that provide customers with mental health care.
Essentially a product based company has many physical challenges. You’re dealing with physical ingredients or components, the logistics of moving those things around, the tools or machines you need to process them etc.
Service-based companies often largely rely on knowledge, information and skills to provide value to their customers.
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