The Internationalization of Services (Service Marketing 02.06.2021)

The Internationalization of Services

Internationalization describes designing a product in a way that it may be readily consumed across multiple countries. This process is used by companies looking to expand their global footprint beyond their own domestic market understanding consumers abroad may have different tastes or habits.

 

Internationalization describes the process of designing products to meet the needs of users in many countries or designing them so they can be easily modified, to achieve this goal.

 

Internationalization might mean designing a website so that when it's translated from English to Spanish, the aesthetic layout still works properly. This may be difficult to achieve because many words in Spanish have more characters than their English counterparts. They may thus take up more space on the page in Spanish than in English.

 

In the context of economics, internationalization can refer to a company that takes steps to increase its footprint or capture greater market share outside of its country of domicile by branching out into international markets.

 

The global corporate trend toward internationalization has helped push the world economy into a state of globalization, in which economies throughout the world become highly interconnected due to cross-border commerce and finance.

 

As such, they are greatly impacted by each other’s national activities and economic well-being.

1. Internationalization describes designing a product in a way that it may be readily consumed across multiple countries.

2. This process is used by companies looking to expand their global footprint beyond their own domestic market understanding consumers abroad may have different tastes or habits.

3. Internationalization often requires modifying products to conform to the technical or cultural needs of a given country, such as creating plugs suitable for different types of electrical outlets.

 

Examples of Internationalization

When a company produces goods for a wide range of customers in different countries, the products that are internationalized often must be localized to fit the needs of a given country's consumers.

 

For example, an internationalized software program must be localized so that it displays the date convention as "November 14" in the United States, but as "14 November" in England. Likewise, units in America are measured in feet or miles, while in Europe and Canada they use the metric system. This means that cars sold across these markets must be able to quickly interchange between miles and kilometres.

 

Types of International Services with Example:

1. Contract-based services represent firms, for example, consultancy services where consumers and producers from different countries come close for transactions

2. Vehicle-based services in this type of firms’ communications between domestic and international market is directed through, vehicles such as satellites and wires or TV.

3. Asset-based services, this type of firms requires platforms, such as banks, where services cross borders with FDI.

4. Object-based services manifest integrated services with physical objects (like DVD, information/manuals for machinery services etc.).

 

Examples

As mentioned, McDonald's operates over 30,000 restaurants in 100 countries. Its worldwide expansion is an example of globalization. By design, the corporation creates a menu adaptable to various local tastes and customs. This policy is an example of internationalization.

 

Emerging markets

Rapid development in emerging economies has also provided new opportunities for internationalization in the service sector. While the percentage of the population employed in the service sector tends to be lower than in developed economies, much of the economic liberalization in emerging markets during the last few decades has been achieved through the sale of state-owned service-sector assets, which has resulted in increased inward FDI. The ongoing opening of these markets offers opportunities for service firms to internationalize, using their experience and knowledge to serve new groups of consumers. However, these opportunities are also accompanied by a number of challenges for service providers.

 

 

SWOT Analysis for Retail (Retail Strategy 02.06.2021)

SWOT Analysis for Retail

Retail companies, like other businesses, often use a SWOT (strengths, weaknesses, opportunities and threats) analysis to evaluate their businesses. A SWOT analysis for retail is a detailed look at the retailer's strengths, weaknesses, opportunities and threats versus key competitors in the marketplace. Strengths and weaknesses are considered internal factors, over which a retailer has more control. Opportunities and threats are external factors, which are positive and negative situations that retailers continuously face.

 

1. Identify and List Strengths

The first step in doing a SWOT analysis for a retail company entails identifying strengths. One possible strength may be the retailer's financial backing if it has plenty of capital and access to bank loans. Another strength may be the retailer's cheaper wholesale prices. Additionally, the company may offer unique products compared to other retailers.

 

For example, a clothing store may sell high-quality but slightly defective clothing at a low price. Whatever the case, a retailer should make a list of all its strengths versus key competitors.

 

2. Identify Palpable (clear / straight forward) Weaknesses

A retail company should identify its most palpable weaknesses in a SWOT analysis. Through market research, the retailer can check if it has a weak brand image versus key competitors or lack of identity in the marketplace. For instance, the store may sell both cheap and expensive brands, so it lacks a defined place in the minds of consumers. Essentially, the store selling to all market segments may mean it has no competitive advantage that sets it apart from other retailers.

 

3. Look for Opportunities

Another step in a retail SWOT analysis is identifying key opportunities in the market, often through a review of a company’s sales force and market research. Opportunities can include unfilled consumer needs. For example, a small web design company may see an opportunity to add consulting services, if it identifies customers who desire it when conducting marketing research. Or a retail company may identify an opportunity to purchase a smaller retailer to increase market share through a SWOT analysis.

 

4. Pinpoint Potential Threats

A retailer can identify certain threats through a SWOT analysis. Threats can include a decrease in consumer demand, a recession, price wars among key competitors or even an increase in competition. Even a change in shopping habits can be a major threat to a retailer.

 

For example, when people started migrating to the suburbs in the 1950s and 1960s, downtown retailers, which represented the traditional way of shopping, were affected. These days, the growing popularity of online shopping represents an ongoing threat to bricks-and-mortar retailers.

 

Analyse SWOT for Better Decision-making

Retailers should not just identify their strengths, weakness, opportunities and threats; they must also use this analysis to develop effective marketing strategies. This can be accomplished by matching an internal variable, like strengths, to an external variable, like opportunities. For example, the owner of a chain of gift shops may have a tech-savvy marketing team – a strength – so she may see the opportunity to increase sales and profits through social media campaigns over the Internet that the marketing team can spearhead.

 

SWOT analyses can also be integrated into a retailer’s hiring practices. Asking a potential manager prospect to complete a SWOT on the business or a competitor as part of the vetting process can reveal helpful information and identify candidates with the analytical skills to improve the company’s bottom line.

 

Indian Retail: Analysing the SWOT Matrix

The Indian retail sector is growing rapidly. The relaxation in FDI norms is bound to generate even more interest in the Indian retail market.

1. Strength

The inherent strength of the Indian economy provides a boost to retail. Following are some of the factors that strengthen the economy:

Purchasing Power

Population Demographics

Low Retail Penetration

Aspiring Middle Class

 

2. Weakness

Despite the positives, there are certain facets of the sector that may dampen growth. Following are the key areas to consider:

Political Uncertainty and Regulatory Requirements

Poor Infrastructure and Supply Chain Management

 

3. Opportunity

Retailers in India have been experimenting to arrive at a successful formula, but there is no single strategy. The market is still undergoing a lot of changes, both from the regulatory as well as demand side. Following are some of the winning factors that players could focus on:

Innovation

Digital Strategy

Customer-centric Approach

Changing the Regulatory Scenario

 

4. Threat

The two most important threats are as follows:

Availability of land and real estate

Human Capital

Classification of DSS, Types of DSS & Users of Decision Support System (MIS 02.06.2021)

Classification of DSS

There are several ways to classify DSS, which are as follows −

1. Text Oriented DSS − It contains textually represented information that could have a bearing on decision. It allows documents to be electronically created, revised and viewed as needed.

 

2. Database Oriented DSS − Database plays a major role here; it contains organized and highly structured data.

 

3. Spreadsheet Oriented DSS − It contains information in spread sheets that allows create, view, modify procedural knowledge and also instructs the system to execute self-contained instructions. The most popular tool is Excel and Lotus 1-2-3.

 

4. Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure written for performing certain calculations and particular program type.

 

5. Rules Oriented DSS − It follows certain procedures adopted as rules. Export system is the example.

 

6. Compound DSS − It is built by using two or more of the five structures explained above.

 

Types of DSS

Following are some typical DSSs −

1. Status Inquiry System − It helps in taking operational, management level, or middle level management decisions, for example daily schedules of jobs to machines or machines to operators.

 

2. Data Analysis System − It needs comparative analysis and makes use of formula or an algorithm, for example cash flow analysis, inventory analysis etc.

 

3. Information Analysis System − In this system data is analyzed and the information report is generated. For example, sales analysis, accounts receivable systems, market analysis etc.

 

4. Accounting System − It keeps track of accounting and finance related information, for example, final account, accounts receivables, accounts payables, etc. that keep track of the major aspects of the business.

 

5. Model Based System − Simulation models or optimization models used for decision-making are used infrequently and creates general guidelines for operation or management.

 

Users of Decision Support System:

The ultimate user of a decision support system is the decision maker; however, he may not actually run the system.

 

1. Terminal mode:

The decision maker is the direct user of the system through on line access.

 

2. Clerk mode:

The decision maker uses the system directly but offline, preparing input on a coding form.

 

The primary difference between this mode and the terminal mode is in the technology employed.

 

3. Subscription mode:

The decision maker receives reports that are generated automatically on a regular basis.

 

4. Intermediary mode:

The decision maker uses the system through intermediaries, who perform the analysis and interpret and report the results. The decision maker does not need to know the intermediary used the system to arrive at the requested information.

There are two types of intermediaries that reflect different types of support for the manager.

 

(a) Expert tool user:

This person is skilled in the application of one or more types of specialised problem-solving tools.

 

(b) Staff assistant or staff analyst:

This person has specialized knowledge about problems and some experience with the decision support technology. The staff assistant essentially extends the manager’s capabilities by taking over many of the tasks of problem solving such as setting up the problem, obtaining data and building the initial model.

 

4P’s of Social Marketing (Service Marketing 01.06.2021)

Chapter 4

Special aspects of Service Marketing

Social Marketing

Social marketing is marketing designed to create social change, not to directly benefit a brand. Using traditional marketing techniques, it raises awareness of a given problem or cause, and aims to convince an audience to change their behaviours.

 

So, instead of selling a product, social marketing “sells” a behaviour or lifestyle that benefits society, in order to create the desired change. Instead of showing how a product is better than competing products, social marketing “competes” against undesirable thoughts, behaviours, or actions.

 

4P’s of Social Marketing

Product

The social marketing "product" is not necessarily a physical offering. A product exists, ranging from tangible, physical products (e.g., medicines), to services (e.g., medical exams), practices (e.g., eating a heart-healthy diet) and finally, more intangible ideas (e.g., environmental protection). In order to have a viable product, people must first perceive that they have a genuine problem, and that the product offering is a good solution for that problem.

 

Price

"Price" refers to what the consumer must do in order to obtain the social marketing product. This cost may be monetary, or it may instead require the consumer to give up intangibles, such as time or effort, or to risk embarrassment and disapproval.

If the benefits are perceived as greater than their costs adoption of the product is much greater.

 

Place

"Place" describes the way that the product reaches the consumer. For a tangible product, this refers to the distribution system--including the warehouse, trucks, sales force, retail outlets where it is sold, or places where it is given out for free.

For an intangible product, this may include doctors' offices, shopping malls, mass media vehicles or in-home demonstrations.

 

Promotion

Promotion consists of the integrated use of advertising, public relations, promotions, media advocacy, personal selling and entertainment vehicles. Public service announcements or paid ads are one way, but there are other methods such as coupons, media events, editorials or in-store displays.

Additional Social Marketing "P's"

Publics / People

Social marketers often have many different audiences that their program has to address in order to be successful. "Publics" refers to both the external and internal groups involved in the program. External publics include the target audience, secondary audiences, policymakers, and gatekeepers, while the internal publics are those who are involved in some way with either approval or implementation of the program.

 

Partnership

Social and health issues are often so complex that one agency can't make a dent by itself. You need to team up with other organizations in the community to really be effective. You need to figure out which organizations have similar goals to yours--not necessarily the same goals--and identify ways you can work together.

 

Policy

Social marketing programs can do well in motivating individual behavior change, but that is difficult to sustain unless the environment they're in supports that change for the long run. Often, policy change is needed, and media advocacy programs can be an effective complement to a social marketing program.

 

Purse Strings (Funding)

Most organizations that develop social marketing programs operate through funds provided by sources such as foundations, governmental grants or donations. This adds another dimension to the strategy development-namely, where will you get the money to create your program?

The SWOT Matrix (Retail Strategy 01.06.2021)

“SWOT analysis” involves a systematic analysis of the internal strengths and weaknesses of a business firm (financial, technological, and managerial) and of the external opportunities and threats in the firm’s environment like changes in the markets, laws, technology and the actions of the competitors.

The SWOT Matrix

	Internal Strength (S)	Internal Weakness (W)
External Opportunity (O)	SO Strategies	WO Strategies
External Threats (T)	ST Strategies	WT Strategies

SO Strategies:

The SO strategies try to improve the company’s strengths relative to its environmental opportunities. These strategies use firm’s internal strengths to take advantage of external opportunities. It is the aim of enterprises to move from other positions of the matrix to this one.

 

WO Strategies:

The WO strategies will enable the firm to overcome weaknesses and focus to tap its opportunities. WO strategies are evolved to improve internal weaknesses by taking advantage of external opportunities.

 

ST Strategies:

The ST strategies try to gear up the internal strengths to reduce the external environmental threats. The basic objective of these strategies is to maximize the advantage of internal strengths while minimizing the external environmental threats.

 

WT Strategies:

The WT strategies are the defensive strategies used to counter the internal weaknesses as well as external threats. In this situation retrenchment (reduction of expenditure), joint ventures and liquidation strategies need to be evolved to up or out.

 

SWOT matrix is widely used as a strategic planning tool and used to generate several strategic alternatives. The aim of a business organization is to move from one position to another desirable position in the SWOT matrix. SWOT matrix can be prepared for the whole organization or for particular strategic business unit.

 

The basic objectives of conducting SWOT analysis are:

(1) To identify the shortcomings in the company’s present skills and resources.

(2) To exploit the strengths of the company to achieve its objectives.

(3) To focus on profit-making opportunities in the business environment and for identifying threats.

(4) To highlight areas within the company, which are strong and which might be exploited more fully and weaknesses, where some defensive planning might be required to prevent the company from downfall.

(5) Eliminating the weaknesses that expose a company to external threats.

(6) Highlights the strengths, which the firm should seek to exploit.

(7) Converts the threat or weakness into an advantage.

(8) Expose the shortcomings in the company’s present skills and resources.

(9) Match the company’s strengths to take advantage of the opportunities in the market place.

 

The SWOT matrix is criticized for the following reasons:

(a) It does not show how to achieve a competitive position.

(b) It is a static assessment of the organization on a particular time.

(c) It lead the firm to overemphasize a single internal or external factor in formulating strategies.

 

To analyse the business situation, a strategist needs to prepare several SWOT matrix for different points of time.

 

 

Decision Support System - Characteristics, Benefits & Elements (MIS 01.06.2021)

Decision Support System - Characteristics, Benefits & Elements

Decision making is an important part managing organizations successfully. Decision support systems (DSS) is a computer-based software application system where the business data is analyzed in the form of information and presents it to the user so that the user can take meaningful business decisions more easily. It is intended to help managers in decision-making by accessing large volumes of information produced from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

 

The unique executive user configuration of the Decision Support System (DSS) is based on the following characteristics:

1. Specialize in Easy-to-use Software:

The DSS specializes in easy-to-use software that uses simple English commands rather than technical computer terms

2. Employs Interactive Processing:

The rapid response time of a DSS permits interactive processing.

3. Use and Control Rests with the User:

The use and control of the DSS rests with the user and not the central information management department.

4. Flexible and Adaptable:

The DSS is flexible and adaptable to change in the executive’s style or in the external environment.

5. Executive Decisions are the Focal Points:

The data for the DSS and associated models are organized around the executive’s decisions rather than around existing databases.

 

Benefits of DSS

1. Improves efficiency and speed of decision-making activities.

2. Increases the control, competitiveness and capability of futuristic decision-making of the organization.

3. Facilitates interpersonal communication.

4. Encourages learning or training.

5. Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision.

6. Helps automate managerial processes.

 

A typical DSS consists of the following elements:

1. An MIS that supports several methodologies for accessing and summarizing data

2. A sophisticated database that allows information to be accessed in various ways

3. A user-friendly interface that allows the user to use simple commands rather than technical computer terms when communicating with the DSS

4. A database built from both external and internal sources so that the manager can relate internal events to external forces

5. Rapid response time, which makes DSS an easy and rewarding system to use.

 

A DSS must provide information to managers whenever it is needed in a form they can easily understand. A typical DSS places the information under the manager’s direct control.