SERVICE

INDUSTRY
A brief insight of trends and future.
 THE SERVICE INDUSTRY
• Economic segment that provides certain intangible
activity that fulfils a particular need
• Like Banking, Telecommunication, Wholesale, Retail,
Software Development, Medicine, Engineering,
Tourism etc
 HOW BIG IS IT IN SIZE?
• The key driver of India’s economic growth
• Contributed 54.17 per cent of India’s Gross Value
Added at current price in 2018-19
• India’s services sector GVA grew at a CAGR of 6.96 per
cent to US$ 1,356.49 billion in FY19 from US$ 846.84
billion in FY12
• Net export estimate from April to November 2019 in
services is US$ 142.02 billion and import is US$ 89.24
billion
 HOW BIG IS IT IN
MONEY?
• Largest recipient of FDI in India with inflows of US$
74.94 billion between June 2019 and April 2000.
• Leisure, business travel and tourism spending are
expected to increase to US$ 234.4 billion and US$
12.9
• India’s earnings from medical tourism could exceed
US$ 9 billion by 2020.
• Indian healthcare companies are entering into merger
and acquisitions with domestic and foreign companies
to drive growth and gain new markets.
 THE COMPETITION WITHIN THE
INDUSTRY
 LOWER-COST LABOR.
o Using talent from labor pools that pay lower wages is
relatively easy in this era of modern communications.
 AUTOMATION.
o The primary challenge is that automation spreads so
rapidly that you can only sustain an automation
advantage by continuously improving your technology.
 SERVICES INTEGRATION.
o Start with your process and identify all the inputs
needed and then develop or acquire the capability to
control those inputs.
 THE COMPETITION WITHIN THE
INDUSTRY
 PROCESS ADVANTAGE.
o Process advantages arise when you have an approach to
offering services that delivers the same or similar
benefits at a lower cost. 
 TALENT APPROACH.
o Some firms take a distinct, identifiable approach to the
way they recruit or manage talent. 
 CULTURE. 
o The culture must provide an actual benefits.
o Need to prove recognition from a respected independent
source is a good start.
 THE
WHERES
WHOS
HOWS
WHATS
 1. BHARTI AIRTEL
• STRENGTHS :
o The Name itself
o High Brand Equity – High ‘Brand Recall’
o Strategic alliances
o Extensive Infrastructure

• WEAKNESSES :
o Outsourced Operations
o Venturing into African Operations
o High Debt
 1. BHARTI AIRTEL
• OPPORTUNITIES :
o VoLTE
o Lower inflation rate
o New environmental policies

• THREATS :
o Rising pay level
o Changing consumer buying behavior
o Shortage of skilled work force
 2. RELIANCE
INDUSTRIES
• STRENGTHS :
o Strong Market Position
o Brand Name and Brand Image
o Improvements in Value Chain

• WEAKNESSES :
o Decline in production in exploratory blocks
o Divesting and relinquishing activities
o Legal proceedings and litigations
 2. RELIANCE
INDUSTRIES
• OPPORTUNITIES :
o New operational plants
o Investing in international oil and gas destinations
o New offers in Jio

• THREATS :
o Intense Competition
o Reliance Jio ending offers
 3. XPO LOGISTICS INC
• STRENGTHS :
o High level of Customer Satisfaction
o Successful track record
o Reliable Suppliers

• WEAKNESSES :
o High attrition rate in work force
o Limited success outside core business
o Poor in integrating firms with different work culture
 3. XPO LOGISTICS INC
• OPPORTUNITIES :
o Market development will increase its competitiveness comparison
o Lower inflation rate
o New environmental policies

• THREATS :
o Rising pay level
o Changing consumer buying behavior
o Shortage of skilled work force
 THE PAST
• Contribution of Service Sector in GDP
from the year 1950 to 2011
THE PRESENT
 HOW DID IT GROW?
• Economic Influence
• Cultural changes
• IT Revolution
• Development of markets
• Market orientation
• Health Awareness
• Rampant migration
• GST
 THE FUTURE
• The highest employment elasticity among all sectors
• Potential for huge growth as well as the capability to
deliver highly productive jobs - leading to revenue
generation
• The Skill India program aims to achieve its target of
skilling/ up - skilling 400 million people by 2022
• It aims to do this mainly by fostering private sector
initiatives in skill development programs, and by
providing them with the necessary funding
• Start-up India initiative is a key enabler for service
industry in India- by offering to support innovative start-
ups
 THE CHALLENGE
• Services being intangible, the customer is uncertain
and feels he is taking a risk
• Defining & improving the quality
• Trust of the customer
• Competition from others as well as clients
• Coordination of Marketing, Operations & HR is a
tedious task
• Passionate and hard working employees
• Setting prices for the service
• Standardization vs. Personalization