Strategies for globalizing service operations

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Abstract
International trade in services is growing rapidly despite many barriers to trade. Consumer services are being established world wide and increasingly business services are becoming globalized in much the same way that manufacturing is outsourcing overseas. The manager of a service organization can no longer ignore international competition in services, especially the globalization of back‐room operations. Service managers need a framework in which to develop a global service strategy. Addresses two questions which managers face when developing a global service strategy: what are the factors that we can use to classify services in terms of their potential for moving globally; and how do these factors translate into strategies for the globalization of specific services? The most common dimensions for classifying service operations include consumer involvement and customization, complexity of inputs and outputs, and labour intensity. Examines five generic strategies: multi‐country expansion; importing customers; following your customers; service unbundling; and beating the clock.

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