What are the major difference between service and manufacturing industry?
Manufacturing Industries engaged in the production of goods (finished products) that have value in the marketplace. These industries are further classified into two as Process Industries (Flow production or continuous process production industries) and Discrete Manufacturing Industries.
Service Industries include those industries that do not produce goods, but provide certain services. The peculiarity of these industries is that often the consumption of the service takes place while it is in the generation. Typically, this sector includes hospitality, advertising, banking, insurance, consultancy, logistics, etc.
The significant difference between the various types of industries is observed when we analyze the manufacturing or service environment in which they operate. Elements of the manufacturing environment include external environmental forces, corporate strategy, business unit strategy, other functional strategies (marketing, engineering, finance, etc.), product selection, product/process design, product/process technology and management of competencies.
Ultimately, what matters is the framework in which the overall manufacturing or service strategy is developed and implemented.