Q: What are the reasons for Servcorp’s success in international markets? To what extent has Servcorp been able (a) to standardize, and (b) to customize its service offering worldwide?
In international markets Servcorp has obviously developed both a mix of standardization (office layouts, facilities available, the way each client is treated) and customization (local staff with local knowledge are used as in Bangkok, Jakarta etc.).
Reasons of Servcorp’s success in international markets
The discussion highlights:
- Understanding the needs of travelling executives
- Making the most of globalization trends
- Having the latest technology
- Paying attention to the tangible evidence
- Providing added value
- Constant innovation.
Of course, after you read the Servcorp story you will glean some others success factors.
Q: To what extent should service businesses standardise both core and supplementary service elements when marketing throughout the Asia-Pacific? Suggest specific instances where you believe that a strategy of mass customization would be more appropriate for some of the supplementary services.
A: The Servcorp story is perhaps quite a good example of this. The core service (office procedures, facilities available, layout, and treatment of customers) is standardized across their many offices throughout the world. Customization is achieved by using local staff who can add value by providing translation services, local knowledge, etc.
From this example, it might seem that the core service should be standardized while it is possible to customize the supplementary service elements. However, this not a universal law – some bright students may find some exceptions to this.
Q: The News Ltd/Murdoch launch of Super League on 4 February 1997 as a competitor of the Australian Rugby League was in part based on the premise that Super League would be marketed via cable television throughout South-East Asia.
Is sport and Rugby League (or Rugby Union, or Soccer for that matter) in particular a ‘service’? What problems will News Ltd have encountered in diffusing Rugby League throughout Asia?
A: As a form of recreational entertainment sport can be classified as a service. Certainly, the characteristics and imperatives of services marketing appertain in the context of sports marketing.
Researchers may find it worthwhile to explore this more fully with students, with reference to a particular sporting club of their choice.
Problems that News Ltd Encountered in Diffusing Rugby League
Problems that News Ltd may have encountered in diffusing Rugby League throughout Asia include:
- Unlike basketball, Rugby League is not a fully global sport
- therefore, not likely to be readily known and accepted
- The sport is not played in Asia
- Cultural differences affecting attitudes to contact sport
- Engendering team support and loyalty