Subject category:
Strategy and General Management
Published by:
INSEAD
Length: 20 pages
Data source: Field research
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Abstract
Since the 1990s, one observes a clear internationalisation and consolidation trend in the European temporary work services. The diminishing role of the national legislation, the liberalisation in some European countries for temporary work contracts and the growing trend of cross-border contracts of European multi-nationals with TWBs, were causing the current evolution in the industry. A group of European (and even global) temp agencies was formed, competing on a more international level. It was, however, confronted in the different countries with local temp agencies. This note opens opportunities for discussion on three main issues: (1) Drivers for internationalisation: What is driving companies in an industry towards more internationalisation? Economies of scale, pan-European legislation and liberalisation, client demand for cross-border contracts or the competitive interaction between different players? How can local companies survive?; (2) Europeanisation versus localisation? Is a service industry by definition local? What are the benefits of a pan-European strategy in these sorts of organisations?; and (3) Internationalisation of services: How do manufacturing and services industries differ in terms of internationalisation pressures? This case won first prize in the EFMD 1997 Case Competition in the category European Management.
About
Abstract
Since the 1990s, one observes a clear internationalisation and consolidation trend in the European temporary work services. The diminishing role of the national legislation, the liberalisation in some European countries for temporary work contracts and the growing trend of cross-border contracts of European multi-nationals with TWBs, were causing the current evolution in the industry. A group of European (and even global) temp agencies was formed, competing on a more international level. It was, however, confronted in the different countries with local temp agencies. This note opens opportunities for discussion on three main issues: (1) Drivers for internationalisation: What is driving companies in an industry towards more internationalisation? Economies of scale, pan-European legislation and liberalisation, client demand for cross-border contracts or the competitive interaction between different players? How can local companies survive?; (2) Europeanisation versus localisation? Is a service industry by definition local? What are the benefits of a pan-European strategy in these sorts of organisations?; and (3) Internationalisation of services: How do manufacturing and services industries differ in terms of internationalisation pressures? This case won first prize in the EFMD 1997 Case Competition in the category European Management.