When the physical product cannot easily be differentiated, the key to competitive success may lie in
adding valued services and improving their quality. Rolls-Royce PLC has ensured its aircraft
engines are in high demand by continuously monitoring their health for 45 airlines through live
satellite feeds. Under its TotalCare program, airlines pay Rolls a fee for every hour an engine is in
flight, and Rolls assumes the risks and costs of downtime and repairs.13
The main service differentiators are ordering ease, delivery, installation, customer training,
customer consulting, and maintenance and repair