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Business Services
1
 Examine the important role of services in
international business.
 Understand why trade in services is more
complex than trade in goods.
 Appreciate the heightened sensitivity required
for international service success.
 Learn that stand-alone services are becoming
more important to world trade.
 Examine the competitive advantage of firms in
the service sector.
2
 The rise of the service sector is a global
phenomenon.
 Economies of developing countries
generally first establish agricultural and
manufacturing sectors before entering
into the services sector.
 As more countries enter the sector, the
global services business will become
more competitive.
3
 The rise in services trade is due to
changes in the environment and in
technology.
4
 Reduction of
government
regulation.
 Technologica
l
advancement
.
5
 Easy access to
global markets.
 Little-known firms
can become known.
 Electronic business
media occurs at
different rates in
different countries.
6
 Banking and consulting services can
become internationally competitive.
 Insurance services can be sold
internationally.
 Communication services have excellent
success in international operations.
 Institutions successfully offer
international teaching services.
 Tourism is a major service export.
7
 Novices follow the path of
the good, if the service is
delivered in support of a
good.
 New marketers search for
similar market situations
abroad if the service is
independent from goods.
8
 Will the service be
directed at people or
things?
 Will the service act
result in tangible or
intangible actions?
9
 Directed at People’s Minds:
◦ Arts
◦ Religion
◦ Consulting
 Directed at People’s Bodies:
◦ Healthcare
◦ Fitness
◦ Restaurants
10
 Directed at physical
possessions:
◦ Laundry
◦ Landscaping
◦ Refueling
 Directed at intangible assets:
◦ Banking
◦ Research
◦ Investments
11
 Providing objective verification
of their capabilities.
 Providing personal guarantees
of performance.
 Cultivating a professional
image.
12
 Customer interface is intense.
 Proper provisions must be
made for training of
personnel.
 Major emphasis must be
placed on appearance.
 The person delivering the
service communicates the
overall attitude/value of the
service corporation.
13
 Because services cannot be
stored, there is greater
responsiveness to demand
fluctuations.
 Greater pricing flexibility
must be maintained.
 The intangibility of services
makes financing more
difficult.
14

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ELINOR MARINELLI: AN EXPERT IN TAX AND BUSINESS SERVICES

  • 2.  Examine the important role of services in international business.  Understand why trade in services is more complex than trade in goods.  Appreciate the heightened sensitivity required for international service success.  Learn that stand-alone services are becoming more important to world trade.  Examine the competitive advantage of firms in the service sector. 2
  • 3.  The rise of the service sector is a global phenomenon.  Economies of developing countries generally first establish agricultural and manufacturing sectors before entering into the services sector.  As more countries enter the sector, the global services business will become more competitive. 3
  • 4.  The rise in services trade is due to changes in the environment and in technology. 4
  • 5.  Reduction of government regulation.  Technologica l advancement . 5
  • 6.  Easy access to global markets.  Little-known firms can become known.  Electronic business media occurs at different rates in different countries. 6
  • 7.  Banking and consulting services can become internationally competitive.  Insurance services can be sold internationally.  Communication services have excellent success in international operations.  Institutions successfully offer international teaching services.  Tourism is a major service export. 7
  • 8.  Novices follow the path of the good, if the service is delivered in support of a good.  New marketers search for similar market situations abroad if the service is independent from goods. 8
  • 9.  Will the service be directed at people or things?  Will the service act result in tangible or intangible actions? 9
  • 10.  Directed at People’s Minds: ◦ Arts ◦ Religion ◦ Consulting  Directed at People’s Bodies: ◦ Healthcare ◦ Fitness ◦ Restaurants 10
  • 11.  Directed at physical possessions: ◦ Laundry ◦ Landscaping ◦ Refueling  Directed at intangible assets: ◦ Banking ◦ Research ◦ Investments 11
  • 12.  Providing objective verification of their capabilities.  Providing personal guarantees of performance.  Cultivating a professional image. 12
  • 13.  Customer interface is intense.  Proper provisions must be made for training of personnel.  Major emphasis must be placed on appearance.  The person delivering the service communicates the overall attitude/value of the service corporation. 13
  • 14.  Because services cannot be stored, there is greater responsiveness to demand fluctuations.  Greater pricing flexibility must be maintained.  The intangibility of services makes financing more difficult. 14