Question

CASE STUDY With the advancement in technology and the goal to scale its business, JK Tyre & Industries has been working on a two-pronged strategy to add ‘significant relevance’ to its overall business. Along with the mainstream tyres, the Delhi based company is also running a fleet operating management business and a mobility business vertical. “In the fleet management business, from selling a tyre as a commodity, it becomes a kind of service. We have tied up with 1300 of the 1800 large fleets across India. We provide all the services and the customer pays for the tyre’s upfront cost.” Anuj Kathuria, India President, JK Tyres, said. Any fleet of 100 trucks/buses, or more, is considered a ‘large fleet’. An initiative like the fleet management service also contributes to sustained relationship with customers, leading to repeat purchases of tyres by them. The customer base of 1300 fleet operators hasn’t come easily for JK Tyres, an early mover with such a business intervention in the industry. The customer base has been built over the past two decades. Under the fleet management business, JK Tyres is also offering tyre-as-a-service. It has about 250 pit stops, and close to 100 truck wheel centres, where its services are provided. The company, which has also developed a tyre with 80% biodegradable materials, says that the ‘green tyre’ is close to a market launch. The tyre major has a target to achieve net zero emissions by 2050. -auto.economictimes.indiatimes.com, February 9, 2024.

With reference to the above case study answer the following questions:

1. Analyse the above case study and give any five differences between product and service.
2. Explain how ‘Industrialisation’ and ‘Transport’ cause ecological damage.
3. 1. Mention any three steps taken by the president of JK Tyres to contribute sustained relationship with customer.
   2. Describe any two steps taken by JK Tyres to develop as a part of the fleet management business.

Answer 1

(i)

Sr. No.	Basis	Product	Service
1.	Tangibility	Products are tangible.	Services are intangible.
2.	Homogeneity	Products are homogeneous in many respects.	Services are heterogeneous.
3.	Separability	Products can be separated from their providers.	Services cannot be separated from their providers.
4.	Storability	Products can be stored.	Services can not be stored.
5.	Transfer of ownership	When a product is sold the title of ownership transfers from seller to buyer.	In case of services, there is no transfer of title of ownership.

(ii) Both industrialisation and transportation significantly contribute to ecological damage in the following ways:

1. Industrialisation: Industrialisation contributes to ecological damage in the following ways:
   • Pollution: Factories and businesses release pollutants, including greenhouse gases like carbon dioxide and methane, which contribute to climate change and air pollution. Chemical waste can contaminate water bodies, harming aquatic life.
   • Deforestation: Industrial expansion sometimes leads to frequent deforestation, diminishing biodiversity and changing ecosystems.
   • Resource Exploitation: Industries abuse natural resources, causing soil erosion, water depletion, and loss of fertile land.
2. Transport: Transport causes ecological damage in the following ways:
   • Air pollution: Fossil-fuel-powered vehicles emit harmful gases, including carbon monoxide and nitrogen oxides, contributing to smog, respiratory issues, and global warming.
   • Habitat Disruption: Construction of roads, highways, and railways disrupts wildlife habitats, fragmenting them and harming species.
   • Oil Spills: Accidents involving the movement of oil by ships can lead to devastating spills, harming marine ecosystems.

(iii)

(a) Three steps taken by the president of JK Tyres to contribute sustained relationship with customers:

1. Fleet Management Services: JK Tyres provides tyre-as-a-service, building customer confidence by not only selling tyres but also managing them, with consumers paying in advance for services.
2. Long-Term Ties: Partnering with 1300 major fleet operators for over 20 years fosters loyalty and reliability.
3. Ground Support: Establishing 250 pit stops and almost 100 truck wheel centres for accessible services.

(b) Two steps taken by JK Tyres to develop the fleet management business are as follows:

1. Comprehensive Solutions: Transitioned from selling tyres as commodities to delivering them as services, ensuring a customer-focused strategy by providing tyres as a service.
2. Green Innovations: The company developed an eco-friendly tyre made from 80% biodegradable materials, called the “green tyre”. The tyre major aims to reach net-zero emissions by 2050, so these advances accord with sustainability goals.