Cooperation in non-financial services

Abstract

Chapter 18 focuses on the non-financial service sector and the professional service firm in particular. It describes how professional service firms bent on expansion are increasingly developing characteristics similar to manufacturing firms, enabling them to take advantage of economies of scale and scope, thereby commoditizing their products/services. They are also digitizing back offices. As such they are making themselves good candidates for globalization by means of cooperative strategy. The chapter also considers the position of the smaller professional service firm, which it views as having more limited opportunities due to the weakness of its brand name in terms of international recognition. However, if the smaller firm focuses on bespoke products and developing a good unique selling proposition (USP), it too may use cooperative strategy successfully to aid its international expansion. Finally the chapter discusses how the collaborative movement has impacted on three specific service sectors, aviation, tourism, and academia.