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 time Versioning 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

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Fixing or preventing weaknesses that provide opportunities to competitors

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Maintaining consistent prices that provide value

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Keeping strong customer relationships

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Continuous innovation

Increase its market share •

Increasing market share in served markets, thus increasing profitability

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Producing high-quality services

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Creating good service experiences

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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 1. 2.

Followers

Defend their position. Types of followers Counterfeiter Cloner Imitator Adapter

Niche marketers 1. 2. 3. 4.

Well defined niche. Create expand and protect niche. Often attacked by large farms. Multiple niching

SERVICE PERFORMANCE MATRIX AND INNOVATION Service performance Effectiveness matrix. Achieving bench mark standard Capability matrix. Average value of service features Efficiency matrix. Cost of service delivery, Resource utilized. Innovation and Scalability New 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 country Export through agents or 3rd parties( Mc Donald) Open sales offices outside country markets Shifting production base Complete 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 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