FACTORS STIMULATING THE TRANSFORMATION OF THE SERVICE ECONOMY

Government Policies Social Changes Business Trends Advances in IT Internationalization

 Changes in
regulations
 Rising customer  Produces add value to  Contingence of  TNC’s
 Privatization
expectations service to sell it computers and  Increased
 New rules to protect
 More efficiency  More strategic alliances telecom international travel
customers,
 More people short of  Quality movement  Greater bandwidth  International
Employees,
time  Marketing emphasis by  Miniaturization Strategic alliances
Employment
 Increased desire for non- profit orgs  Wireless
 New agreement on
buying experiences Vs  Emphasis on productivity networking
trade in services
things and cost savings  Faster, more
 Rising ownership of  Growth of franchising powerful software
computers and mobile  Innovative hiring  Graphics ,Audio,
phones practices video
 Immigration  Relaxation of  Growth of internet
professional association
standards

INCREASED DEMAND FOR SERVICES MORE INENSIVE COMPETITION

SERVICE INNOVATION STIMULATED APPLICATION OF NEW AND IMPORTED TECHNOLOGIES

INCREASED FOCUS ON SERVICES MARKETING AND MANAGEMENT