Internationalization of Services

Arun Mishra
9893686820
arunjimishra@gmail.com
Introduction to Service
Services are economic activity between two
parties.
Implying an exchange of value between seller
and buyer.
Services are performance that are mostly
time-based.
The Value comes from access to a variety of
value-creating elements rather than transfer of
ownership.
Characteristics of Services
Perishability
Fluctuating Demand
Intangibility
Inseparability
Heterogeneity
Pricing of Services
Service quality is not statistically
measurable.
Factors affecting the adoption of
services
Market Drivers : Common consumer needs
across many countries have created demand for
consistent services.
Competition Drivers: Presence of competitors
from different countries.
Technology Drivers: Advances in Information
Technology
Cost Drivers: Economies of scale may be gained
from operating on an international basis.
Government Drivers: Govt. Policies can serve
to encourage or discourage development of
services internationally.
How the nature of Service Affect
International Distribution?
People Processing services:
Require direct contact with the customer
Service provider needs to have local presence.
Three options:
Exporting the service concept- partnership
with the local supplier
Import Customers- customers are invited to
service factory.
Exporting the information via
telecommunication.
How the nature of Service Affect
International Distribution?
Possession Processing Services:
Involves services to customers physical
possession.
Includes repairs and maintenance, fright
transport, cleaning and warehousing.
Require ongoing local presence.
How the nature of Service Affect
International Distribution?
Information -Based Services:
Includes mental-processing services and
information processing.
Example News & Entertainment, Banking,
Insurance etc.
Can be distributed in three ways:
Exporting the service concept- partnership
with the local supplier
Import Customers- customers are invited to
service factory.
Exporting the information via
telecommunication.
Process of Internationalization
Study of environment
Study of customer
Identify problem
Effort for social acceptance
Study of legal issue
Financial prospective