THE INTERNATIONALIZATION OF SERVICES

SERVICE EXPANSION STRATEGIES MULTISITE same service in multiple locations MULTISERVICE new services at existing locations MULTISEGMENT different class of service for a new market segment at new or existing locations

STRATEGIC SERVICE VISION AS A CONCEPTUAL ANALYSIS TOOL TARGET MARKET SEGMENTS POSITIONING SERVICE CONCEPT VALUE/COST LEVERAGING MARKETING OPERATIONS OPERATING STRATEGY FINANCIAL STRATEGY-SYSTEM INTEGRATION SERVICE DELIVERY SYSTEM

ISSUES POSED BY INTERNATIONALIZATION OF A STRATEGIC SERVICE VISION TARGET MARKET CULTURE INDUSTRY STRUCTURE DEMOGRAPHICS SERVICE CONCEPT CULTURE PERCEPTIONS OF VALUE EXPECTATIONS USAGE PATTERNS INTERACTIONS WITH SERVICE PROVIDERS OPERATING STRATEGY LABOR MARKET INSTITUTIONS MANAGERIAL PRACTICE LANGUAGE SERVICE DELIVERY SYSTEM TECHNOLOGY PREMISE LABOR MARKET NORMS AND PRACTICES

MARKET IDENTIFICATION OPPORTUNISTIC, NOT WELL PLANNED Marriott in Poland In response to a request by an Austrian construction company Coopers & Lybrand’s in Hungary Reactive expansion due to the needs of a major client (Ford in Hungary) BETTER PLANNED EXPANSION EFFORTS Fast Food Operations in Eastern Europe McDonald’s (Russia, Czech Rep., Poland, Slovenia, Hungary) Pepsi Co. (Russia, Poland) Disney in Japan and Europe Considerable Analysis

ENTRY STRATEGIES WITH THE USE OF A LOCAL PARTNER Tokyo Disneyland (Oriental Land Co.) McDonald’s International Expansion Local partners as guides in site selection, restaurant design, marketing and public relations e.g., McDonald’s in Russia McDonald’s in Japan WITHOUT LOCAL PARTNERS EuroDisney in Paris Marriot in Poland

ADAPTATION OR INTEGRATION SOME FORM OF ADAPTATION McDonald’s in Japan No menu adaptation Location: Busy urban areas vs. suburbs Smaller restaurants Marketing: Emphasis on youngsters than family audiences ALMOST NO ADAPTATION Marriott in Poland Operations met its international standards Extensive staff training, higher -than-market wages and close relationship with suppliers

IMPLICATIONS FOR ACTION DEVELOP CAPACITY TO ANALYZE MARKET OPPORTUNITIES. USE SSV AS A TOOL CONSIDER THE USE OF LOCAL PARTNERS OR HEAVY INVOLVEMENT OF LOCAL MANAGERS ENTRY STRATEGIES THAT MAINTAIN INTEGRATION BETWEEN ELEMENTS OF SSV. EDUCATION & PUBLIC RELATIONS CRUCIAL. SERVICE DELIVERY SYSTEMS CAN BE SUCCESSFULLY TRANSFERRED WITH THE APPROPRIATE ALLOCATION OF RESOURCES AND MANAGEMENT ATTENTION. ANTICIPATE CONSEQUENCES OF ENTRY BY COMPETITORS WORKFORCE AND CUSTOMER LOYALTY CRUCIAL DETERMINANTS OF SUCCESS.