Question

Why are most personal services not easily globalized? Give some examples that show how a service has to be standardized before going global ‑‑ and how standardized personal service is almost always impersonal?

Answer 1

Most of the personal service are customizable as per customer's requirement. There needs to be high flexibility to adjust the nature of the services to satisfy the customer. For example, Financial consulting firms which guide individuals and companies with respect to financial management and improving the returns on investment. Each individual has different needs and priorities. Thus, a finance and investment consultant customizes his offering . It depends on various factors such as income, standard of living, number and nature of dependents, requirements, age, etc.

Customization for a small business is advantages, but when the organization grows, it's reach grows and it become difficult to manage the customization. Thus, when the firm wishes to extend it's reach globally, it has to standardize it's portfolio and offering. Such as defined packages or basic package plus add-ons.

Standardized personal service is almost always impersonal since it does not consider specific customer alone. It segments the market and standardizes the services.