Ch 11. Online Service Industries

1
Ch 11. Online Service Industries

• Major Features
• The Trends
• Online Banking, Brokerage, Insurance, and Real
  Estate
• Online Travel Services and Trends
• Online Career Services and Trends

2
Major Features of Online Service Industries

• Online Service Industries have the ability to
• Collect, store, and disseminate high value
  information
• Provide reliable, fast communication
• Personalize and customize servie or components of
  service.

3
The Trends in Online Financial Services

• By 2007 more than 57 million households will be
  banking online and over 40 million households
  will be trading stocks online.
• In the insurance and real estate, consumers seek
  information online to complete the purchase.
• Financial services are now more and more
  integrated.

4
Key Features of Online Banking and Brokersage,
Insurance, and Real Estate Industries

• Multichannel (MC firms ) firms are growing faster
• Customer acquisitions costs are getting higher
• MC firms drawing more visitors

• Nonfinancial institutions are joining the boom
• Growing account aggregations

5
The Success of Online Travel Services

• They offer convenience as one s-stop shopping
  places.
• Travel is information intensive and therefore
  particularly suited for online
• Airline, car rental, and hotel services grow
  faster than others
• Corporation are outsourcing their travel offices

6
Online Career Services and Trends

• More efficient and cost effective
• Highly flexible
• Reduces search time and cost effective
• More and more middle level jobs are being posted
  online
• Monster Worldwide is now the biggest in the
  business through acquisitions and rapid
  consolidation.