Contemporary Scenario of Service Industry Essay

Contemporary Scenario of Service Industry - Essay Example In this paper, the researcher has discussed on various strategies and models adopted by service industries to attain competitive advantage and identifying the key success factors of the behind accomplishing their corporate image. The service sector is the portion of the economy that generally produces intangible goods. Throughout the world, service sector faces a high level of competition as there are many buyers and seller in the market. Producing service trend generally requires less natural capital and more human capital. One of the major benefits of growing service sector is less pressure on the local and global environment (Reed and DeFillippi, 1990). Presently developing countries give more emphasis on service sector in comparison to the other sectors. In the modern world, the growth of service sector is particularly important as it allows employing educated labor force and thus, reducing unemployment and economic crisis. In the service sector, service quality is one of the basic tools to gain competitive advantage. As defined by West and DeCastro (2001), there is no proper definition of the service quality due to the existence of discrepancies among the people. Measuring service quality is the most recurrent topic in management literature. However, (Youndt et al. 1996) described that perceived service quality by the people is the best way to measure attributes of the service over which the company has control. Youndt et al. (1996) developed a conceptual framework of service quality where they identified five major gaps that could impact customer’s evaluation of service qualities in various industries in service sectors, for instance, banking, tourists, event,  and hospitality. These gaps were: Service firms may not always understand what service or features they must have in their product to meet needs of the customers, or what level of features needed to be added in order to deliver high-quality service. This gap arises when firms positively identify wants of the customers, but the means to deliver service according to their expectation does not exist (Godard, 2001).