Service Marketing in era of globalization.

[dimpy.handa]

Globalisation has made the world an increasingly interwoven place. Earlier, SMEs were operating in a protected environment, nowadays a direct consequence of globalisation is free trade flow and increasing competition. Along with foreign competition, domestic demand is changing over to better quality products at internationally competitive prices. The countries having comparative advantages in terms of technology, infrastructure and intellectual property will rule over the others and command a larger share of the world market. This, in turn, is creating pressures on SMEs to pay more attention to quality, price and delivery considerations. While putting SMEs under pressure to be competitive, the globalisation has also opened up new business opportunities amidst challenges. With domestic market opened to imports of variety of products, export is not any more a choice, but a compulsion for SMEs for their survival. But are the SMEs equipped to meet these challenges?

 

[swatiraohnlu]

A recently proposed alternative view is that services involve a form of rental through which customers can obtain benefits. What customers value and are willing to pay for are desired experiences and solutions. The term, rent, can be used as a general term to describe payment made for use of something or access to skills and expertise, facilities or networks (usually for a defined period of time), instead of buying it outright.