INTEGRATED SERVICE STRATEGY&GLOBALIZATION OF SERVICES

CONTENTSGrowth Strategies for service BusinessesQuality Strategies for service PlayerCustomer Satisfaction measures and their use in Improving service performanceService Profit ChainStrategy for market leadersStrategies for ChallengersStrategies for FollowersStrategies for Niche MarketersService Performance metricsINNOVATION the last frontier

Growth Strategies for service businessNew Business Launching a completely New business for the first timeVersioning Strategy

Quality Strategies for service PlayerGood hiring and training proceduresService BlueprintsMonitoring customer satisfaction regularlyUsing Employee suggestion

Customer Satisfaction measures and their use in Improving service performance

SERVICE PROFIT CHAINSource: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, Putting the Service-Profit Chain to Work, Harvard Business Review, March-April 1994, p. 166.

STRATEGIES FOR MARKET LEADERS Expand the total market byFinding new usersEncouraging more usage Protect its current market share byAdopting defense strategiesFixing or preventing weaknesses that provide opportunities to competitorsMaintaining consistent prices that provide valueKeeping strong customer relationshipsContinuous innovation Increase its market shareIncreasing market share in served markets, thus increasing profitabilityProducing high-quality servicesCreating good service experiencesBuilding close customer relationships

DEFENSE STRATEGYA market leader should generally adopt a defense strategySix commonly used defense strategiesPosition DefenseMobile DefenseFlanking DefenseContraction DefenseCounter-Offensive Defense

STRATEGIES FOR CHALLENGERSThe market challengers strategic objective is to gain market share and to become the leader eventuallyBy attacking the market leaderBy attacking other firms of the same sizeBy attacking smaller firmsTypes of Attack StrategiesFrontal attackFlank attackBypass attackGuerrilla attack

STRATEGIES FOR FOLLOWERS AND NICHE MARKETERSFollowersDefend their position.Types of followers Counterfeiter Cloner Imitator Adapter Niche marketersWell defined niche.Create expand and protect niche.Often attacked by large farms.Multiple niching

SERVICE PERFORMANCE MATRIX AND INNOVATIONService performanceEffectiveness matrix. Achieving bench mark standardCapability matrix. Average value of service featuresEfficiency matrix. Cost of service delivery, Resource utilized.Innovation and ScalabilityNew ideas Developing market for new product.Sustaining growth.

Globalization of Services

Globalization and IndiaGlobalisation ushered in by the reformsDriven by the IT based service industriesPioneering work of TCS, WIPRO, Infosys etc.Major player in BPO marketTransferring operations to India- GE, HSBCOutsource to third party in India- British railMac Donalds, Pizza hut Operation of NIIT abroadPopularity of Hindi Movies

Gaining impetus-MEDICAL TOURISMGrowing at 30% annuallyValue proposition in terms of cost & quality1/10th of the cost compared to western countriesHolistic medicinal service- unique basket of servicesChallenge lies in positioning India as a favorable healthcare destinationProblem- frequency of flight serviceCollaboration with Indian Health care FederationRoadmap- information outlets, spread awareness & get accreditation

The Road aheadValue addition should be the mantraRole of skills and vision5 stages of globalizationStrong product concept in home countryExport through agents or 3rd parties( Mc Donald)Open sales offices outside country marketsShifting production baseComplete integration ( ING Vysya)

Indias record in globalizationInfosys acquisition in AustraliaIncrease in revenue and workforceMost companies were forced to enter global waters due to privatization, accountability standardsEngineering sectorStandardization vs CustomizationTo think global and act local (McD)Keep global requirements in mindCultural aspectsKeep standard core service and customize the remaining

Managing employees in GlobalizationAct to the circumstances(Disney- Europe )Expatriate employeesMindset of firmsWorld as your marketplaceAmerican firmsOpportunities of Indian firms

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