Dimensions of Global Operations Strategy In Service Business: A Value-Chain-Based Analysis

Eisenhower C. Etienne, PhD.
Associate Professor
School of Business and Industry,
Florida A&M University

Abstract

The nature of global operations strategy in manufacturing industries is well documented since these industries represent the prototypical cases of globalization of operations. Because of the nature of services, companies competing in these industries have less innate potential to compete internationally by deploying the full spectrum of global strategies. However, a few service companies have been very successful in competing internationally. We use the value chain model first to pinpoint the range of strategic options open to service companies, and then to show how the cutting-edge service companies have used value chain concepts to design high performing global operations strategies. We support the insights developed with extensive anecdotal evidence.

Key Words: Service industries, global operations strategy, value chain, configuration, standardization, differentiation, proliferation, integration, coordination, social software, execution, social operating mechanism

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