The Top 10 Business Theories Used in Product Companies and Why They Fail in Service Firms
The business world is flooded with theories that claim to drive growth, improve efficiency, and maximize profit. Many of these theories emerge from product-based companies, tech startups, manufacturing firms, and consumer goods giants, where scaling is a matter of producing and distributing more units. However, when these same theories are applied to service firms, they often fall flat. Why? Because professional services businesses operate on fundamentally different principles: expertise, client relationships, and human capital.