Competing in the service sector ‐ The entrepreneurial challenge

Amy Risch Rodie · Charles L. Martin

35 citations0/0 files storedInternational Journal of Entrepreneurial Behaviour & Research

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Business Strategies and Innovation Entrepreneurship Studies and Influences Service and Product Innovation

Abstract

Despite the rapid growth and lure of the service sector, entrepreneurs are well advised to consider the numerous competitive challenges encountered when owning and operating a service business. The unique nature of services (i.e. intangibility, heterogeneity, perishability, simultaneity) serves as a backdrop to accentuate the competitive landscapes in the service sector. To frame the analysis and discussion of the competitive environment for service businesses, the article applies Porter’s conceptualization of the five sources of competition – rivalry among existing intra‐industry firms; new entrants; substitutes; suppliers; and buyers. Discusses implications and suggestions for service entrepreneurs throughout the article.

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References

1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 2006The Core Competence of the Corporation 2000What is strategy 1991A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm?1985Problems and Strategies in Services Marketing 1992Marketing Services: Competing Through Quality 1977Breaking Free from Product Marketing 1990Service encounters and service relationships: Implications for research

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2009The Application of Performance Measurement in the Service Quality Concept: The Case of a Greek Service Organization 2014Service Quality a Customer Satisfaction: A case study in Banking Sector 2012Translating the Service Quality Gaps into Strategy Formulation. An Experimental Case Study of a Greek Academic Department

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