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Justine Lan International Consultant International Trade Centre
Women Vendors Exhibition and Forum Sao Paulo, Sept 2015
Doing International Business in the Services Sector
1. The importance of services
2. How services exporters export
3. Export/ marketing strategy
Understanding Services The performance of a service
activity produces value by providing insights or solutions to
customers’ problems
Changes to..
What are Services Industries?
Financial Telecommunications IT & Computer Transport &
Logistics
Professional Business, Technical,
R&D Education &
Tourism Health
Media, entertainment,
cultural, audiovisual
Services incidental to mining,
agriculture and manufacturing
employment growth female wage growth productivity growth
Agrarian economies
Good dominated economies
services economies
Global trends in composition of services exports
23% 20%
31%
25%
23%
26%
23% 28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2011
Other Commercial Services (e.g. finance, communications, other business services)
Other Business Services
Travel Services
Transport Services
services outsourcing
Firm level upgrading
Smiley face
1. The importance of services
2. How services exporters export
3. Export/ marketing strategy
What? Services are provided by a resident to a non-resident
How? MODE 1
MODE 2
MODE 3
MODE 4
Services Supplier Buyer
MODE 5?
13
IBM Japan harnesses its global integration capabilities
Human Resources
Manila, Philippines
Accounts Payable
Shanghai, China
Procurement Operations
Shenzhen, China
Japan
Help Desk and Customer Service
Brisbane, Australia
Accounting
Kuala Lumpur, Malaysia
Back Office Services
Dalian, China
Example of a Services Supply Chain
OPPORTUNITIES FOR exporting services SMEs Firm size and production scale tend to matter less in services markets
than “nimbleness” and project by project flexibility BEGINS with the development of internationally competitive services
offerings REINFORCED by a well-thought out export strategy SUPPORTED by export promotion activities RESULTS in successful and sustainable export
Services exporters do international
business differently
Mutual trust
Project based
innovation
Creativity
Expertise
Cost
Technology Relationships
Reputation
Customer Focus
Online Functionality
Intellectual Property
Innovation
Competitive Factors
Government relations Include services in the national export development strategy
Level playing field
Remove barriers to trade
Public Private Dialogue
Traditional
Credit rating
Factoring
Export Credit Insurance
Foreign Direct
Investment
Seed Funding,
Microfinance
Innovative
Business Angels
Venture Capital
Crowd Funding
Impact Investment
Business Incubators
Public Private
Partnerships
Example A - Crowdfunding
Example B – Microfinance
1. The importance of services
2. How services exporters export
3. Export/ marketing strategy
Marketing your
services
Website
Success Stories / reviews
Capabilities & Qualifications
Marketing value &
solutions
Office in target market
Networking, relationship marketing
Marketing value and solutions
• May need a guarantee
• Local partner / other services firm
• For communication
• Client/ services provider travels
Transportation Technology
Payment Distribution
Delivering your services
Global value chains in tourism
Airlines
Railway companies
Coach and Tour companies
Ship/ferry operators
Tour Operators
Online Travel Agents (O TAs)
Hotels
Bed and breakfast/ homestay
Campsites
Apartment providers
Holiday home providers
Lodge operators
Restaurants
Cafés Resorts
Rail and bus companies
Coach tour
companies
Boat rentals
Retail sector
Retail sector
Souvenir vendors
Bars and clubs
Theme parks
Special event providers
Protected areas
Tour guides
Amusement parks
Vis itor centres Public markets
Museums
Exhibition facilities
Grocery stores
Leisure sports providers
Publishers
Catering service providers
Musicians/dance groups
Taxi companies
Marketing, PR and advertising
agencies
Printers
IT sector
Airlines
Railway companies
Coach and Tour companies
Ship/ferry operators
Street vendors
Fast food providers
Sights and attractions
Historical sites
Religious sites Rickshaw operators
Bike and moped rentals
Bakeries
Real estate sector
Construction industry
Architects and engineers
Wholesalers and distributors
Agro-Industry
Security service
providers
Laundry service providers
Trades businesses
Finance and banking sector
Pr imary Industry
producers
Beverage manufacturers
Communications and IT prov iders
Furniture manufacturers
Souvenir/handicrafts manufacturers
Training and development agencies
and insti tutions
Building materials
manufacturers
Marketing and advertising agencies
Textile and
Timber industry Power prov iders
Waste management
industry
Water supply industry
Lawyers and notaries
Nursery/gardening services
Social and env ironmental
projects
T o u r i s m D e s t i n a t i o n Country of Residence
Co
un
try o
f Resid
ence
Horizontal, Direct Value Creation
Ve
rtic
al, Ind
irect
Va
lue C
rea
tio
n
Tourism & Trade services chain
Tour operators + DMOs + Inbound/ground operators + travel agencies
Travel planning
and booking
Arrival
Local transport & services
Departure
Accommodation F&B Nature and
cultural tourism activities
Leisure activities/
entertainment
Other serv ice prov iders ITC support & partnershi ps Tourism service
prov iders ITC support & partnerships
Travel agencies
eTourism online DMOs
Airline booking engines
Travel Agents
Car rental companies
Legal, regulatory and Compliance
Innovative services using online platform
2008 2009 2012
sharing economy – P2P economic model
2011 2012 2005
Referrals
Online Events
Attracting buyers
ASK yourself: • Do you have a website? If not, you can easily build one
Choose a template, choose a domain and you’re done!
ASK yourself: • Do you have a website? YES!
• Does your website cater to the needs of potential buyers from
overseas? • What will buyers find when they google for the services you
provide? Are you there to be found?
• Do you have compelling information and content on your website? On social media?
• What is your competitive advantage?
• What is your online reputation?
• How to gain more exposure?
• Services exhibition
• Chamber of commerce / other gov bodies offering B2B program B2B
• https://www.freelancer.com • https://www.upwork.com • https://www.elance.com B2C
• https://www.groupon.com
• http://www.spafinder.com O2O
Have you identified the
buyer’s specific need?
NO
Brand & values Tell success
stories Web presence
YES
Tailor a solution to the buyer’s
need
Build your pitch around that
Relate to previous
experience
Craft your solution! Think on the spot
Who What
When Where
Why How