Integrated Service Strategy a topic in Service marketing

INTEGRATED SERVICE STRATEGY&

GLOBALIZATION OF SERVICES

CONTENTS Growth Strategies for service Businesses Quality Strategies for service Player Customer Satisfaction measures and their use in

Improving service performance Service Profit Chain Strategy for market leaders Strategies for Challengers Strategies for Followers Strategies for Niche Marketers Service Performance metrics INNOVATION the last frontier

Growth Strategies for service business

New Business Launching a completely New business for the first timeNew Business Launching a completely New business for the first timeVersioning StrategyVersioning Strategy

Quality Strategies for service Player Good hiring and training procedures Service Blueprints Monitoring customer satisfaction regularly Using Employee suggestion

Customer Satisfaction measures and their use in Improving service performance

SERVICE PROFIT CHAIN

Source: 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 by

• Finding new users• Encouraging more usage

Protect its current market share by• Adopting defense strategies

• Fixing or preventing weaknesses that provide opportunities to competitors

• Maintaining consistent prices that provide value

• Keeping strong customer relationships

• Continuous innovation

Increase its market share• Increasing market share in served markets, thus increasing profitability

• Producing high-quality services

• Creating good service experiences

• Building close customer relationships

DEFENSE STRATEGY

A market leader should generally adopt a defense strategy

Six commonly used defense strategies Position Defense Mobile Defense Flanking Defense Contraction Defense Counter-Offensive Defense

STRATEGIES FOR CHALLENGERS

The market challengers’ strategic objective is to gain market share and to become the leader eventually By attacking the market leader By attacking other firms of the same size By attacking smaller firms

Types of Attack Strategies Frontal attack Flank attack

Bypass attack Guerrilla attack

STRATEGIES FOR FOLLOWERS AND

NICHE MARKETERS

FollowersFollowers1. Defend their position.2. Types of followers Counterfeiter Cloner Imitator Adapter

Niche marketersNiche marketers1. Well defined niche.2. Create expand and protect niche.3. Often attacked by large farms.4. Multiple niching

SERVICE PERFORMANCE MATRIX AND

INNOVATIONService performanceService performance

Effectiveness matrix. Achieving bench mark standardCapability matrix. Average value of service featuresEfficiency matrix. Cost of service delivery, Resource utilized.

Innovation and ScalabilityInnovation and ScalabilityNew ideas Developing market for new product.Sustaining growth.

Globalization of Services

Globalization and India

• Globalisation ushered in by the reforms• Driven by the IT based service industries• Pioneering work of TCS, WIPRO, Infosys etc.• Major player in BPO market

Transferring operations to India- GE, HSBC Outsource to third party in India- British rail

• Mac Donald’s, Pizza hut • Operation of NIIT abroad• Popularity of Hindi Movies

Gaining impetus-MEDICAL TOURISM

• Growing at 30% annually• Value proposition in terms of cost & quality• 1/10th of the cost compared to western countries• Holistic medicinal service- unique basket of services• Challenge lies in positioning India as a favorable

healthcare destination• Problem- frequency of flight service• Collaboration with Indian Health care Federation• Roadmap- information outlets, spread awareness & get

accreditation

The Road ahead

• Value addition should be the mantra• Role of skills and vision• 5 stages of globalization

Strong product concept in home countryExport through agents or 3rd parties( Mc Donald)Open sales offices outside country marketsShifting production baseComplete integration ( ING Vysya)

India’s record in globalization

• Infosys acquisition in Australia• Increase in revenue and workforce• Most companies were forced to enter global waters due

to privatization, accountability standards• Engineering sector

Standardization vs CustomizationStandardization vs Customization• To think global and act local (McD)• Keep global requirements in mind• Cultural aspects• Keep standard core service and customize the remaining

Managing employees in Globalization

• Act to the circumstances(Disney- Europe )• Expatriate employees

Mindset of firms• World as your marketplace• American firms• Opportunities of Indian firms