What is the difference between product company and service company?

Product based companies create or design their products or application in advance even before clients approach them. Once the product is made or application is developed it is opened to the market. Service based companies work only when a client approaches them with specific needs or requirements.

What is salary in service based company?

Freshers at service-based companies are mostly paid 3-5L per year whereas most product-based companies easily pay double of that. The big tech product-based companies and top startups pay 4-5 times of that.

Which one is better service-based or product based company?

It is clear that Product Based Companies are better than the Service-Based ones, but if you are not able to get into the former one but have the opportunity to work in a service-based one, then don’t miss it. Something is better than nothing.

Which one is better product based or service based?

Why product based company pays more?

The company is more independent and take decisions on its own and so require employees to be involved at each stage. While other companies are service-based companies, they hire freshers for typing the code, while instructed by US or any other outside India.

What is the long run average cost of production?

The long run is associated with the long-run average (total) cost (LRAC or LRATC), the average cost of output feasible when all factors of production are variable. The LRAC curve is the curve along which a firm would minimize its cost per unit for each respective long-run quantity of output.

What happens if a company does not produce at its lowest cost?

If a company is not producing at its lowest cost possible, it may lose market share to competitors that are able to produce and sell at minimum cost. The long run is associated with the long-run average (total) cost (LRAC or LRATC), the average cost of output feasible when all factors of production are variable.

What are the different types of compensations for startups?

Compensation can be divided into salary, benefits and incentives. While salary and benefits must be competitive, incentives are the most likely drivers of attracting and retaining the best employees in startups. There are three key types of incentives: bonuses, profit sharing and stock options.

What is the difference between a small and a large company?

For instance a comptroller in small company may have his or her hands in budgets, forecasting and creating financial statements while in a large company he or she may only be responsible for preparing financial statements, says Downs. Small businesses typically have less rules and thus more flexibility in the work life balance they offer.