QUESTION Do players in your industry manufacture overseas? What aspects of their operations do they outsource?
SUMMARY
In the media industry (particularly for media providers), it is near impossible to "manufacture overseas," as the companies usually provide services rather than products. For example, Netflix recently began offering its services to customers in Canada and Latin America, but all services are provided by Americans in the United States. On the other hand, Verizon is a good example of a media company that outsources to other nations in "Europe/Middle East/Africa, Asia/Pacific, and Latin America." But Verizon outsources its customer service, not its production. In short, different media companies choose to operate solely in the US or all over the world depending on the types of services they provide.
OPINION
For some companies, it is profitable to outsource operations such as customer service. (This is why there's often a foreign employee on the other end when you call your cable provider for help in the middle of the night.) Having customer service employees in different parts of the world also ensures that the proper language and time zones are represented--meaning more customers can receive help.
Verizon, self-described "global leader in communications," has buildings in different countries so that its customers can always reach a representative when there's an issue. Netflix does not provide this service because it operates mainly within the US, and its services are very different (Netflix doesn't do phone/internet/wireless).
Some companies would benefit from establishing overseas bases but other would not. Traditional providers like Time Warner, Comcast, and Verizon would stand to benefit from outsourcing customer service. Other companies, such as Netflix, Redbox, and Hulu, don't need to outsource because they provide a service that isn't usually consider a necessity (whereas television/cable is crucial to most people's comfort). In other words, online media providers don't need to manufacture abroad/outsource, but more traditional media distributors oftentimes do to help the bottom line.
SOURCES
http://www22.verizon.com/jobs/whoweare_vzbglobal.html
http://ir.netflix.com/#
http://www.webosroundup.com/wp-content/uploads/2011/04/verizon-world-phones.png
You made an interesting argument about how some companies should outsource service while others shouldn't, based on how important customer service is. I've certainly spoken to Verizon officials more often than I have to Netflix, because if you can make a website which works consistently there's not much need for customer support while Verizon gets a call every time there's trouble with the phone/internet/cable.
ReplyDelete"Verizon, self-described "global leader in communications," has buildings in different countries" - hm...I didn't know Verizon had buildings in other countries. I thought they only had an International Roaming plan and that's it...
ReplyDeleteI liked how you made a point about it being it "near impossible [for the media industry] to "manufacture overseas," as the companies usually provide services rather than products' - it makes me wonder about ways they could become more international, since they cannot actually "deliver" their product to customers.
-Saida Khamidova