Consumer Services:
The range of services provided to consumers of a product by the company that produces, markets, or supports the product. Consumer services may include technical support, warranty registration, problem notifications, account management, mediati on with other vendors, or other service depending on the nature of the product purchased by the customer.
Producer services:
In the older economic order most large firms produced all their services (such as: advertising, maintenance, sanitation, business consulting, auditing, and engineering) "in house". Most large firms in the 1970s began to "unbundled" these services in an effort to become more economically efficient. Large firms today buy (contract out) these services from smaller highly specialize firms. These highly specialized firms sell what economist call producer services. something necessary for a persons survival
Licensing Franchising
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Joint ventures Strategic alliance( Lenovo and Asiainfo) Wholly owned subsidiaries Mergers and acquisitions
Recent Trends
Off-shoring Service Social Changes (e.g., affluence, lack of time, desire for experiences) Manufacturers offer service Advances in IT (e.g., speed, digitization, wireless, Internet) Growth of chains and franchising Pressures to improve productivity and quality More strategic alliances Innovative hiring practices
Create relational databases about customer needs and behavior for insights Leverage employee capabilities and enhance mobility Centralize customer service-faster and more responsive Develop national/global delivery systems Create new, Internet-based business models
2. Competition Drivers:
High two-way trade / cross-border FDI Global competitors Increased ownership of corporations by foreign acquirers
5. Government Drivers:
Reduction of tariff barriers Reduction of non-tariff barriers Decline in role of governments as producers and consumers Privatization in previously state-dominated economies Shift to open market economies from closed communist systems in eastern Europe
Assessing Globalization
Presence in strategic markets Location of value adding activities Achieving desirable balance between globalization and customization Consistency in quality and pricing of services Responding to changes in environment
3. Financial Barriers
Changes in currency exchange rates Problem with logistics
Service Strategy
Elements of Global service strategy : 1. Defining global vs. Multi local strategies a. Global market participation b. Delivering global products c. Global location d. Global marketing e. Global competitive moves