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    Services Dominate Economy in Most Nations Most New Jobs are Generated by Services

    Fastest Growth Expected in Knowledge-Based

    Industries Many New Jobs are Well-Paid Positions RequiringGood Educational Qualifications

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    Source : The World Factbook, Central Intelligence Agency

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    Its current participation in export

    (service) accounts for 2.45% in the world

    trade activities.

    Contribution of service sector in

    countrysGDP is 54.6%.

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    Businesses, government agencies, nonprofitorganizations.

    Organized and unorganized sector.

    Companies of any size--from huge global

    corporations to local small businesses

    Limited companies to individual runorganizations/set up.

    High technology content to very low technologyinter- phase organizations.

    Jobs range from high-paid professionals andtechnicians to minimum daily wage earners.

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    Sub sectors GDP contribution

    1. Trade and hotels, tourism services 14.3 %

    2.Transpot, storage and communication. 16.0%

    3. Banking, insurance and other financial services 9.3%

    4. Public administration & defense 7%

    5. IT , ITES and other services 8%

    TOTAL 54.60%

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    o

    Tourism and Travelso Hospitality( Hotels, Motels , Resorts).

    o Catering And Restaurant Industry.

    o Consultancy Services.

    o Insurance .

    o Health care and Hospital management.o Housing and Construction Industry.

    o Burial permission and dispose off agencies.

    o Communication.

    o Entertainment.

    o Banking Services.

    o Transportation and Logistics.

    o Theme parks.

    o Leisure activities industry.

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    o Legal Agencies.

    o Maintenance Services.

    o Information Technology Services.

    o Research and Development.

    o Investment Advisers.

    o Accounting and Tax Services.

    o Electricity, Gas and Sanitary Services.

    o Real Estates.

    o Personnel Services.o Social Organizations.

    o Other Service Providers.

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    Financial services banks, insurance .

    Telecommunications

    Health services

    Tourism

    Travel & transport

    Information technology

    Retailing

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    Government

    Policies

    Business

    Trends

    Social

    Changes

    Advances in

    IT

    Globalization

    Innovation in service products & delivery systems, stimulated by better technology

    Customers have more choices and exercise more power

    Success hinges on:

    Understanding customers and competitors

    Viable business models

    Creation of value for customers and firm

    New markets and product categories

    Increase in demand for services

    More intense competition

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    Government

    Policies

    Business

    Trends

    Social

    Changes

    Advances in

    IT

    Globalization

    Changes in regulations

    Privatization

    New rules to protect customers,

    employees, and the environment

    New agreement on trade in services

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    Government

    Policies

    Business

    Trends

    Social

    Changes

    Advances in

    IT

    Globalization

    Rising consumer expectations

    More affluence

    Personal Outsourcing

    Increased desire for buying experiences vs.things

    Rising consumer ownership of high tech

    equipment

    Easier access to more information

    Immigration

    Growing but aging population

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    Government

    Policies

    Business

    Trends

    Social

    Changes

    Advances in

    IT

    Globalization

    Push to increase shareholder value

    Emphasis on productivity and cost savings

    Manufacturers add value through service and

    sell services

    More strategic alliances

    Focus on quality and customer satisfaction

    Growth of franchising

    Marketing emphasis by nonprofits

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    Government

    Policies

    Business

    Trends

    Social

    Changes

    Advances in

    IT

    Globalization

    Growth of Internet

    Greater bandwidth

    Compact mobile equipment

    Wireless networking

    Faster, more powerful software

    Digitization of text, graphics, audio, video

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    Government

    Policies

    Business

    Trends

    Social

    Changes

    Advances in

    IT

    Globalization

    More companies operating on transnational

    basis

    Increased international travel

    International mergers and alliances

    Offshoringof customer services

    Foreign competitors invade domestic markets

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    Services involve a form of rental, offering

    benefits without transfer of ownership

    Services are an act or performance offered byone party to another. (Performances are

    intangible, but may involve use of physicalproducts.)

    Services are an economic activity that does notresult in ownership.

    A process that creates benefits by facilitating adesired change in customers themselves, physicalpossessions or intangible assets.

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    Five broad categories within non-ownershipframework:

    1. Rented goods services

    2. Defined space and place rentals

    3. Labor and expertise rentals

    4. Access to shared physical environments

    5. Systems and networks: access and usage

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    Based on differences in nature of service act(tangible/intangible) and who or what is directrecipient of service (people/possessions), there

    are four categories of services:

    People processing Possession processing Mental stimulus processing

    Information processing

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    `

    People Processing

    Customers must:

    physically enter the service

    factory

    co-operate actively with

    the service operation

    Managers should think

    about process and output

    from customers perspective

    to identify benefits created

    and non-financial costs:

    - Time, mental, physical

    effort

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    Possession Processing

    Customers are less

    physically involved

    compared to people

    processing services

    Involvement is limited

    Production and

    consumption are separable

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    Mental StimulusProcessing

    Ethical standards required

    when customers who depend

    on such services canpotentially be manipulated by

    suppliers

    Physical presence of

    recipients not required

    Core content of services is

    information-based

    Can be inventoried

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    Information Processing

    Information is the most

    intangible form of service

    output,

    But may be transformed

    into enduring forms of

    service output

    Line between information

    processing and mentalstimulus processing may be

    blurred.

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