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Globalization of services

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Globalization of services

  1. 1. Unit-5GLOBALIZATION OF SERVICES
  2. 2. The Growth in Global Service Markets• Globalization refers to the free movement of goods, services, people, capital and technology across various countries in the world• WTO ( World Trade Organization)• GATT ( General Agreement on Tariffs and Trade)
  3. 3. Factors Influencing Globalization• Change in social factors• Changes in technology• Changes in political and legal conditions• Competition in the market• Competitive advantage• Regulations in home country• Lack of demand in home country
  4. 4. Overseas Market Entry Decisions• Exporting• Turnkey projects• Licensing• Franchising• Joint ventures• Strategic alliance• Wholly owned subsidiaries• Mergers and acquisitions• Piggyback
  5. 5. 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
  6. 6. Challenges in the Global Market1. Legal barriers  Discriminating laws  Subsidies  Restrictions on foreign companies entry  Infringement of copyrights and trademarks
  7. 7. Challenges in the Global Market2. Cultural barriers Language Customs Values and attitudes Lifestyle3. Financial Barriers Changes in currency exchange rates Problem with logistics
  8. 8. Factors Influencing Success of A Global Firm• Select the right entry mode• Select the right marketing research methods• Customize the service offering• Train the service personnel• Select the right promotion strategy

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  • AshutoshSwami3

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