Successful global strategy in a service industry.

Essay by mjcestoneUniversity, Bachelor'sA+, January 2004

download word file, 3 pages 4.0

Downloaded 244 times

A global strategy can be used effectively in a service industry if the appropriate drivers exist that will make the service provider successful. It is a growing industry. Today organizations are focusing on a narrowed set of core competencies and are eliminating or outsourcing all other activities such as payroll and call centers to a third party firm. While outsourcing has often been limited to non-core elements, in today's business model any process or function is a viable outsourcing candidate if it provides a cost-effective, value-added solution to the customer. As the service provider opportunities exist in various types of organizations and business sectors, even government agencies. It is important to note that globalization adds some complexities that may not exist in a non-global environment. As with the marketing of a product, a service provider must identify a basic need. The service area is expansive and in many cases success is dependent on whether it is a backroom operation or front office which requires customer interaction.

A service oriented company must understand what global forces might impact their business and must determine the effectiveness of that service in a foreign country. There are various factors that can assist in determining success, however not all apply to every industry. These factors, or global levers, can be either positive or negative and should be used as guiding principles. Governments might prohibit firms from doing business in their country because of government regulations and policies. The country may require certain professional qualifications or have different accounting practices that would preclude a foreign company from being successful. On the other hand globalization of its customers may offer the service provider expanded opportunities. The service provider may enter into an agreement with an existing customer to provide services on a global basis. For many companies...