The Service Model and Service Processes

The Service Model and Service Processes







The Service Model and Service Processes

Assignment 2.1 Question 1)

Effect of Nature of Service on Opportunities for Globalization

Many service firms have recently embraced globalization with open arms considering it opens up new opportunities. However, the opportunities of globalization for a service firm may be affected by different types or the nature of the service. The different types or natures of services include People-Processing Services, Possession-Processing Services, and Information-Based Services. People processing services require direct interaction or contact with the service provider; hence, there is a need for a plant or factory at the geographic location. Common examples of this nature of service are restaurants, where a firm needs to have a restaurant in the area they wish to capture new customers. This affects the opportunity for globalization since the firm has to invest in the area to capture new customers. With this kind of service, a firm that wishes to expand its markets to its mobile customers will have to establish plants in other countries.

Possession processing, on the other hand, involves providing services to customers, physical goods, such as maintenance and repair of their items, where there is a need for direct contact with their possessions requiring the service. A good example can be the motor vehicle service industry where the manufacturer will require establishing servicing plant in other areas. In this nature of service, there are also geographical restraints. For instance, for Toyota motor company to enter new markets, they need to have a servicing plant, which will be served with the responsibility of ensuring maintenance and repair of the vehicles.

In the information-based service category of service, globalization is easier considering it is not restricted by geographic constraints. For instance, providing news to customers is easier since it can be made in one country and exported to other nations. An example is the film industry, where film-producing companies do not have to establish factories in other areas since their services can be distributed through recording in data devices, internet and theaters. More so, any kind of information can be sent through information communication technology, making it easier to provide services globally.

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