Microeconomics
Service Master Pro-is a Company that concerns itself with the provision of a wide variety of services to both firms and residences. The company's flagship brands include but are not limited to TruGreen, AmeriSpec as well as Terminix.
International operations
Currently, Service Master has operations in 14 countries through its vast network of more than 4000 locations. Through its convenient franchise arrangements, the company has continued to expand throughout the world within a relatively short period of time. Though the company's headquarters remain in the U.S.A., ServiceMaster is present (through franchise and company-owned locations) in countries including but not limited to Malaysia, Lebanon, Saudi Arabia, Japan, Spain etc.
The possibilities for further expansion in regard to ServiceMaster seem endless. This assertion is essentially based on the Company's strategy for expansion where it seeks to develop through the issuance of master licenses. This arrangement allows the license owners to not only develop but also to undertake ServiceMaster sublicensing within a specified territory.
Challenges Faced by U.S. Based Firms when setting up in Other Countries
High set-up costs
U.S firms setting up in other countries could face high set-up costs. Typically, these costs are largely made up of sunk costs. By definition, sunk costs include all those costs which are essentially impossible to recover in the event that a firm leaves a given country. Examples in this case include fixed costs, costs of advertising and marketing etc.
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